fMNO/WS 

DEPARTMENT 


IN  THE 

CIRCUIT  COURT  OF  THE  UNITED  STATES 

FOE  THE  DISTRICT  OF  NEW  JERSEY. 


UNITED  STATES  OF  AMERICA, 

vs. 

UNITED  STATES  STEEL  CORPORATION  AND  OTHERS. 


PETITION. 


JOHN  B.  VREELAND, 

District  Attorney  of  the  United  States 
for  the  District  of  New  Jersey. 

GEORGE  W.  WICKERSHAM, 

Attorney -General  of  the  United  States. 

J.  M.  DICKINSON, 

Special  Assistant  to  the  Attorney - 

General  of  the  United  States. 


THE 


CIRCUIT  COURT  OF  THE  UNITER  STATES 

FOR  THE  DISTRICT  OF  NEW  JERSEY. 


UNITED  STATES  OF  AMERICA, 

vs. 

UNITED  STATES  STEEL  CORPORATION  AND  OTHERS. 


To  the  Judges  of  the  Circuit  Court  of  the  United  States  for  the  District 
of  New  Jersey : 

The  United  States  of  America,  by  John  B.  Vreeland,  Attor¬ 
ney  for  the  District  of  New  Jersey,  acting  under  the  direction  of 
the  Attorney-General  of  the  United  States,  brings  this  proceeding 
in  equity  against  United  States  Steel  Corporation,  Carnegie  Steel 
Company,  Carnegie  Company  of  New  Jersey,  Federal  Steel  Com¬ 
pany,  National  Steel  Company,  American  Steel  and  Wire  Com¬ 
pany  of  New  Jersey,  National  Tube  Company,  Shelby  Steel  Tube 
Company,  American  Tin  Plate  Company,  American  Sheet  and 
Tin  Plate  Company,  American  Sheet  Steel  Company,  Ameri¬ 
can  Steel  Hoop  Company,  American  Bridge  Company,  Lake 
Superior  Consolidated  Iron  Mines,  Union  Steel  Company,  H. 
C.  Frick  Coke  Company,  Clairton  Steel  Company,  Tennessee  Coal, 
Iron  and  Railroad  Company,  Great  Western  Mining  Company, 
West  Missabe  Land  Company,  Limited,  Wright  Land  Company, 
Limited,  Davis  Land  Company,  Limited,  Wells  Land  Com¬ 
pany,  Limited,  Stone  Land  Company,  Limited,  Wabigon  Iron 
Company,  Minosin  Iron  Company,  Nibiwa  Iron  Company, 
Wenona  Iron  Company,  Minawa  Iron  Company,  Leonard  Iron 
Mining  Company ,  Arthur  Iron  Mining  Company,  Fillmore  Iron 
Mining  Company,  Harrison  Iron  Mining  Company,  Jackson  Iron 
Mining  Company,  Polk  Iron  Mining  Company,  Tyler  Iron  Mining 
Company,  Van  Buren  Iron  Mining  Company,  Louis  W.  Hill, 
James  N.  Hill,  Walter  J.  Hill,  Edward  T.  Nichols,  J.  H.  Gruber, 
said  named  individuals  being  sued  as  Trustees,  J.  P.  Morgan, 


2 


Charles  Steele,  George  W.  Perkins,  E.  H.  Gary,  Chas.  M.  Schwab, 
Andrew  Carnegie,  Henry  C.  Frick,  James  Gayley,  William  H. 
Moore,  J.  H.  Moore,  Edmund  C.  Converse,  Percival  Roberts,  Jr., 
Daniel  G.  Reid,  Norman  B.  Ream,  John  D.  Rockefeller,  John  D. 
Rockefeller,  Jr.,  P.  A.  B.  Widener,  and  William  P.  Palmer. 

The  following  of  said  defendants  are  corporations  organized 
under  the  laws  of  the  State  of  New  Jersey  and  are  residents  of  the 
State  of  New  Jersey,  to  wit : 

United  States  Steel  Corporation,  Carnegie  Steel  Company,  Car¬ 
negie  Company  of  New  Jersey,  Federal  Steel  Company,  National 
Steel  Company,  American  Steel  &  Wire  Company  of  New  Jersey, 
National  Tube  Company,  Shelby  Steel  Tube  Company,  American 
Tin  Plate  Company,  American  Sheet  and  Tin  Plate  Company, 
American  Sheet  Steel  Company,  American  Steel  Hoop  Company, 
American  Bridge  Company,  Lake  Superior  Consolidated  Iron 
Mines. 


On  information  and  belief  your  petitioner  alleges  and  shows: 

I. 

CONDITIONS  BEFORE  THE  CONSOLIDATIONS  OF 

1898-1900. 

Previous  to  and  until  the  year  1898  the  bulk  of  the  iron  and 
steel  business  of  the  United  States  among  the  several  States  and 
between  the  several  States  and  foreign  countries,  was  carried  on 
by  many  different  persons,  partnerships  or  corporations,  which 
were  in  active  and  general  competition  with  each  other,  except  at 
various  times  and  in  various  localities,  where  such  trade  was  re¬ 
strained  by  them  by  unlawful  pools  and  combinations. 

In  1898,  there  began  a  rapid  and  radical  revolution  in  the 
steel  and  iron  business,  characterized  by  great  consolidations,  re¬ 
sulting  in  bringing,  by  the  year  1900,  a  very  large  proportion  of 
important  branches  of  those  industries,  such  as  crude  and  semi¬ 
finished  steel,  rails,  structural  steel,  plates,  merchant  bars,  wire 
rods  and  wire  products,  sheets,  tin  plate,  and  tubes,  under  the 
control  of  consolidated  concerns,  each  comprising  many  who  for¬ 
merly  had  been  competitors.  Such  consolidations  affecting  the 
defendants  to  this  petition  were  as  follows : 


\Al>Ou  \  t)  . 


3 


II. 

CONSOLIDATIONS  1898-1900. 

FEDERAL  STEEL  COMPANY. 

Id  September,  1898,  the  Federal  Steel  Company  was  incor¬ 
porated  under  the  laws  of  the  State  of  New  Jersey.  It  was  a 
security-holding  company.  It  issued  a  capital  stock  of  approxi¬ 
mately  $100,000,000,  which  exceeded,  by  many  millions,  not  less 
than  twenty,  the  value  of  the  properties  obtained.  It  acquired 
the  entire  capital  stock  of  the  Illinois  Steel  Company ;  the  Lorain 
Steel  Company,  of  Ohio ;  the  Johnson  Company,  of  Pennsylvania ; 
the  Minnesota  Iron  Company^  one  of  the  largest  ore  concerns  in 
the  Lake  Superior  regions  (which  owned  an  important  ore  rail¬ 
road  and  a  fleet  of  ore  vessels),  and  the  Elgin,  Joliet  &  Eastern 
Railway  Company.  By  this  step  there  was  brought  under  one 
control  approximately  fifteen  per  cent  of  the  steel  ingot  produc¬ 
tion  of  the  country.  The  Minnesota  Iron  Company  owned  or 
leased  about  40,000  acres  of  mineral  lands  in  Minnesota  and  con¬ 
trolled  the  Duluth  &  Iron  Range  Railroad,  the  Minnesota  Steam¬ 
ship  Company  and  the  Minnesota  Dock  Company.  The  said 
railroad  extended  from  Duluth  into  the  iron-ore  district  owned 
by  the  Minnesota  Iron  Company  in  Minnesota.  The  Minnesota 
Steamship  Company  owned  a  fleet  of  nine  steel  steamships  and 
seven  steel  barges,  operating  on  the  Great  Lakes. 

The  Illinois  Steel  Company  owned  large  works  at  North  and 
South  Chicago,  also  at  Chicago,  at  Joliet,  Ill.,  and  at  Milwaukee, 
Wis.  It  also  owned  all  the  stocks  and  bonds  of  the  Chicago, 
Lake  Shore  &  Eastern  Railway  Company,  the  Chicago  &  Kenosha 
Railway  Company,  Chicago  &  South  Eastern  Railway  Company, 
the  Joliet  and  Blue  Island  Railway  Company,  and  the  Milwau¬ 
kee,  Bay  View  &  Chicago  Railroad  Company.  It  also  owned  the 
entire  capital  stock  of  the  Southwest  Connellsville  Coke  Com¬ 
pany  and  the  Cundy  Iron  Company,  of  Michigan,  and  owned  or 
leased  about  7,000  acres  of  ore  and  mineral  lands  in  Michigan. 

The  Elgin,  Joliet  &  Eastern  railway  extended  from  Wauke¬ 
gan,  Ill.,  around  Chicago  to  Porter,  Ind.,  and  connected  with 
every  railroad  entering  Chicago.  It  had  branches  to  Aurora 
and  Whiting,  Ind.,  and  South  Chicago,  Ill.,  where  it  owned  ex¬ 
tensive  wharfs  and  other  terminal  property. 

The  property  of  the  Lorain  Steel  Company,  of  Ohio,  consisted 


,35801 


4 


of  a  large  steel  plant  at  Lorain,  Ohio,  with  525  acres  of  land  on 
the  Black  River. 

The  Johnson  Company  of  Pennsylvania  owned  a  manufactur¬ 
ing  plant  and  150  acres  of  land  at  Johnstown,  Pa. 

The  Illinois  Company  and  the  Lorain  Company,  above  re¬ 
ferred  to,  were,  previous  to  said  combination,  competitors. 

In  addition,  the  Federal  Steel  Company  owned  the  entire 
capital  stock  of  the  Lake  Terminal  Railroad  Company  and  the 
Johnstown  &  Stony  Creek  Railroad  Company,  which  owned  re¬ 
spectively  the  terminal  roads  connecting  the  steel  works  at  Lorain, 
Ohio,  and  Johnstown,  Pa.  It  owned  also  the  entire  capital  stock 
of  the  Ingleside  Coal  Company. 

The  underwriting  syndicate  of  the  Federal  Steel  Company  re¬ 
ceived  approximately  $5,680,000  preferred  stock  and  $8,400,000 
of  common  stock  for  approximately  $4,800,000  in  cash,  and  their 
services  in  organizing  the  concern. 

The  purpose  and  the  effect  of  such  consolidation  were  a  com¬ 
bination  between  said  consolidated  companies  and  the  Federal 
Steel  Company,  their  officers,  agents,  promoters  and  underwriters, 
in  restraint  of  trade  and  commerce  among  the  several  States  and 
with  foreign  nations,  within  the  meaning  of  Section  1,  and  were 
an  attempt  by  the  said  parties  to  monopolize  and  a  monopoliza¬ 
tion  of  part  of  the  trade  or  commerce  among  the  several  States 
and  with  foreign  nations,  within  the  meaning  of  Section  2,  of  the 
Anti-trust  Act. 

The  control  of  all  of  the  said  companies,  with  their  properties, 
was  acquired  by  the  United  States  Steel  Corporation  by  the  con¬ 
solidation  as  hereinafter  described. 

CARNEGIE  COMPANY  (OF  NEW  JERSEY.) 

The  Carnegie  Company  (of  New  Jersey)  was  incorporated  by 
the  State  of  New  Jersey  in  March,  1900,  with  a  capitalization  of 
$320,000,000,  half  in  stock  and  half  in  bonds. 

It  took  over  the  Carnegie  Steel  Company  (Lt’d),  and  an  affiil- 
liated  company,  the  H.  C.  Frick  Coke  Company,  with  all  of  their 
subsdiary  companies.  At  the  time  of  its  formation  it  controlled 
fully  eighteen  per  cent  of  the  steel  ingot  production  of  the 
country. 

The  Carnegie  Steel  interests  had  previously  absorbed  the 
Duquesne  Steel  Works,  a  competitor.  The  purpose  and  effect  of 


5 


such  consolidation  and  absorption  were  a  combination  in  re¬ 
straint  of  trade  and  commerce  among  the  several  States  and  with 
foreign  nations,  and  an  attempt  to  monopolize  and  a  monopoliza¬ 
tion  of,  a  part  of  the  trade  and  commerce  among  the  several  States 
and  with  foreign  nations  within  the  meaning  of  the  Anti-trust  Act. 

At  the  time  of  its  acquirement  by  the  principal  defendant,  the 
the  United  States  Steel  Corporation,  as  hereinafter  shown,  it 
owned  or  controlled  the  following  companies  and  their  proper¬ 
ties  : 

Carnegie  Steel  Company  of  Pennsylvania,  owning  Edgar 
Thomson  Works,  Bessemer,  Pa. ;  Duquesne  Works,  Duquesne, 
Pa. ;  Homestead  Works,  Munhall,  Pa. ;  Upper  and  Lower  Union 
Mills,  Pittsburg,  Pa. ;  Carrie  Blast  Furnaces,  Rankin,  Pa. ;  Lucy 
Blast  Furnaces,  Pittsburg,  Pa.,  and  Howard  Axle  Works,  Howard, 
Pa. 

Forty -three  and  six-tenths  per  cent  of  Pennsylvania  &  Lake 
Erie  Dock  Co. 

Twenty-five  per  cent  of  New  York,  Pennsylvania  &  Ohio 
Dock  Company. 

Carnegie  Land  Company  and  Conneaut  Land  Company. 

Eighty-three  and  one-third  per  cent  of  Oliver  Iron  Mining 
Company,  owning  or  leasing  a  large  number  of  active  and  in¬ 
active  iron  ore  properties  on  the  Michigan  and  Mesabi  Ranges, 
which  were  acquired  from  various  independent  mining  compa¬ 
nies. 

Fifty  per  cent  of  Pewabic  Company. 

Fifty-two  per  cent  of  Pittsburg,  Bessemer  &  Lake  Erie  Rail¬ 
road  Company. 

Union  Railroad  Company. 

Eighty-three  and  one-third  per  cent  of  Pittsburg  Steamship 
Company. 

Seventy-five  per  cent  of  Pittsburg  Limestone  Company,  L’t’d. 

Pittsburg  &  Conneaut  Dock  Company;  Carnegie  Natural  Gas 
Company;  Youghiogheny  Northern  Railway  Company;  Mount 
Pleasant  Water  Company;  Trotter  Water  Company;  Mingo  Coal 
Company;  Union  Supply  Company,  and  H.  C.  Frick  Coke  Com¬ 
pany  ;  the  latter  holding  by  direct  ownership,  or  through  subsi¬ 
diary  companies,  about  40,000  acres  of  coking  coal  land,  11,000 
coke  ovens  and  3,500  dwellings,  and  other  property. 

The  purpose  and  effect  of  such  consolidation  were  a  combina- 


6 


tion  in  restraint  of  trade  and  commerce  among  the  several  States 
and  with  foreign  nations,  within  the  meaning  of  Section  1,  and 
an  attempt  to  monopolize  and  a  monopolization  of  part  of  the 
trade  or  commerce  among  the  several  States  or  with  foreign 
nations,  within  the  meaning  of  Section  2,  of  the  Anti-trust  Act. 

The  control  of  all  of  said  companies  with  their  properties  was 
acquired  by  the  United  States  Steel  Corporation,  as  hereinafter 
described. 

AMERICAN  STEEL  AND  WIRE  COMPANY  OF  NEW  JERSEY. 

The  American  Steel  and  Wire  Company  of  New  Jersey  was 
incorporated  under  the  laws  of  the  State  of  New  Jersey  in  Janu¬ 
ary,  1899,  with  $90,000,000  capital  stock.  It  combined  under 
one  management  and  control  all  of  the  leading  concerns  engaged 
in  the  production  in  the  United  States  of  wire,  wire  nails,  and 
other  wire  products. 

Said  concerns,  before  and  up  to  the  said  time  of  consolidation, 
except  when  self-restrained  by  unlawful  pools  and  agreements, 
had  competed  with  each  other  in  interstate  and  foreign  trade  and 
commerce. 

One  of  its  constituent  companies  was  the  American  Steel  and 
Wire  Company,  of  Illinois,  organized  in  1898,  which  was  itself  a 
consolidation  of  six  competitor  companies.  This  company,  in 
taking  over  one  of  its  constituent  companies,  the  Consolidated 
Steel  and  Wire  Company,  itself  a  consolidation  of  seven  plants, 
gave  for  each  $100  of  stock  of  that  company  $175  of  preferred 
and  $175  of  common  stock  of  its  company,  viz:  $350  for  $100. 
In  the  consolidation  under  the  name  of  American  Steel  and  Wire 
Company  of  New  Jersey  each  $100  of  preferred  stock  of  the 
American  Steel  and  Wire  Company  of  Illinois  received  $100  of 
preferred  and  $60  in  common  stock,  and  each  $100  of  the  common 
stock  received  $120  in  common  stock  of  the  new  concern. 

Thus  each  $100  of  stock  of  the  old  Consolidated  Company  be¬ 
came  $490  in  the  stock  of  the  New  Jersey  concern.  This  stock 
so  increased  far  exceeded  the  value  of  the  property  it  represented, 
and  the  effect  of  such  increase  was  to  stimulate  efforts  to  earn  a 
return  upon  a  fictitious  valuation,  through  the  power  created  by 
such  consolidation,  and  through  unlawful  expedients,  by  agree¬ 
ments,  combinations,  and  otherwise,  and  thus  to  onerate  con¬ 
sumers  and  the  public  generally  with  an  unjust  burden,  which 


7 


was  done  by  and  through  the  means  aforesaid.  This  condition 
of  inflated  securities,  with  the  results  as  above  set  out,  was  still 
further  aggravated  by  the  fact  that  the  promoters  and  under¬ 
writers  of  the  organization  of  the  said  American  Steel  &  Wire 
Company  received  for  their  services,  etc.,  of  the  common  stock 
$11,600,000.  The  defendant,  the  American  Steel  &  Wire  Com- 
pan}^  of  New  Jersey,  by  the  said  consolidation,  came  into  the 
ownership  or  control  of  the  companies  and  properties  as  follows : 

American  Steel  &  Wire  Company  of  Illinois,  controlling  Con¬ 
solidated  Steel  &  Wire  Company,  composed  of  seven  united 
plants;  Salem  Wire  Nail  Company,  of  Salem  and  Findlay,  Ohio; 
H.  P.  Nail  Company,  of  Cleveland,  Ohio;  American  Wire  Com¬ 
pany,  of  Cleveland,  Ohio;  American  Wire  Nail  Company,  of  An¬ 
derson,  Ind.;  Ellwood  Wire  &  Nail  Company,  and  I.  L.  Ellwood 
Manufacturing  Company,  of  DeKalb,  Ill. 

Washburn  &  Moen  Manufucturing  Company,  with  four  plants 
at  Worcester,  Mass.,  Waukegan,  Ill.,  and  San  Francisco,  Cal.; 
Worcester  Wire  Company,  of  Worcester,  Mass.;  Cleveland  Roll¬ 
ing  Mill  Company,  of  Cleveland  and  Newburg,  Ohio;  Oliver 
Wire  Company,  of  Pittsburg,  Pa.;  Oliver  &  Snyder  Steel  Com¬ 
pany,  of  Pittsburg,  Pa.;  Pittsburg  Wire  Company,  of  Braddock, 
Pa.;  Indiana  Wire  Fence  Company,  of  Crawfordsville,  Ind.; 
Garden  City  Wire  and  Spring  Company,  of  Chicago,  Ill.;  Con¬ 
solidated  Barb  Wire  Company,  of  Joliet,  Ill.,  and  Lawrence, 
Kans. ;  Laidlaw  Bale  Tie  Company,  of  Joliet,  Ill.;  Cincinnati 
Barb  Wire  Fence  Company,  of  Cincinnati,  Ohio;  Union  Rolling 
Mill  Company,  of  Cleveland,  Ohio;  Portage  Iron  Company,  of 
Duncanville,  Pa.;  Newburgh  Wire  &  Nail  Company, Newburgh, 
N.  Y. ;  Allegheny  Furnace  Company,  Allegheny  Pa.;  Shenango 
Valley  Steel  Company,  Newcastle,  Pa.;  Shoenberger  Steel  Com¬ 
pany,  Pittsburg,  Pa.;  Puget  Sound  Wire  Nail  &  Steel  Company, 
Everett,  Wash.;  fifty  per  cent  of  the  Juniata  Coke  Company, 
Dawson,  Pa.;  nineteen  per  cent  of  the  Pennsylvania  &  Lake  Erie 
Dock  Company,  and  eighty  per  cent  of  the  Edgar  Zinc  Company, 
with  plants  at  St.  Louis,  Mo.,  and  Cherry  vale,  Kans. 

After  its  organization  it  organized  and  owned  American  Mining 
Company,  American  Coke  Company,  American  Steamship  Com¬ 
pany,  and  acquired  fifty  per  cent  of  the  Huron  Water  Company. 

It  thus  obtained  an  almost  complete  monopoly  of  barbed  wire 
and  of  woven  wire  production,  and  controlled  approximately 


8 


our-fifths  of  the  wire  fencing  and  nails,  produced  in  the  United 
States.  The  prices  were  greatly  increased.  The  price  of  nails 
in  1900  was  more  than  two  hundred  per  cent  of  the  price  in  1897. 

The  purpose  and  effect  of  such  consolidation  were  a  combina¬ 
tion  between  said  consolidated  companies  and  the  American 
Steel  &  Wire  Company  of  New  Jersey,  their  officers,  agents, 
promotors  and  underwriters,  in  restraint  of  trade  and  com¬ 
merce  among  the  several  States  and  with  foreign  nations  within 
the  meaning  of  Section  1,  and  was  by  said  parties  an  attempt  to 
monopolize  and  a  monopolization  of  part  of  the  trade  or  com¬ 
merce  among  the  several  States  and  with  foreign  nations,  within 
the  meaning  of  Section  2  of  the  Anti-trust  Act. 

The  United  States  Steel  Corporation,  acquired,  as  hereinafter 
set  out,  the  control  or  ownership  of  all  the  aforesaid  companies 
and  properties. 

NATIONAL  TUBE  COMPANY. 

The  United  States  Tube  Company  w^as  incorporated  under  the 
laws  of  the  State  of  New  Jersey  in  February,  1899.  In  June  of 
that  year  its  name  was  changed  to  National  Tube  Company.  The 
capital  stock  was  $40,000,000,  7  %  cumulative  preferred,  and 
$40,000,000  common.  It  combined  under  one  management  con¬ 
cerns  which,  at  that  time,  controlled  the  bulk  of  the  production 
of  iron  and  steel  wrought  tubing  of  the  United  States — approxi¬ 
mately  ninety  per  cent. 

Said  concerns,  before  and  up  to  the  said  consolidation,  except 
when  self-restrained  by  unlawful  pools  and  agreements,  had  com¬ 
peted  with  each  other  in  interstate  and  foreign  trade  and  com¬ 
merce  in  said  products. 

The  defendant,  the  National  Tube  Company,  by  the  said  con¬ 
solidation,  came  into  the  ownership  or  control  of  the  companies 
and  properties  as  follows: 

Allison  Manufacturing  Company’s  tube  mill,  American  Tube 
&  Iron  Company,  Chester  Pipe  &  Tube  Co.,  Cohoes  Tube  Works, 
Delaware  Iron  Company,  National  Galvanizing  Works,  Ohio  Tube 
Company,  Oil  Well  Supply  Company’s  Continental  Tube  Works 
and  Elba  Iron  Works,  Pennsylvania  Tube  Company,  Riverside 
Iron  Works,  Oil  City  Tube  Company,  and  Syracuse  Tube  Com¬ 
pany. 

It  also  acquired  the  entire  capital  stock  of  the  National  Tube 


9 


Works  Company,  and  a  large  interest  in  the  Western  Tube  Com¬ 
pany,  the  Pittsburg  Tube  Company,  and  seven  per  cent  of  the 
Pennsylvania  &  Lake  Erie  Dock  Company. 

The  purpose  and  effect  of  such  consolidation  were  a  combina¬ 
tion  between  said  consolidating  companies  and  the  National  Tube 
Company,  their  officers,  agents,  promoters  and  underwriters,  in 
restraint  of  trade  and  commerce  among  the  several  States  and 
with  foreign  nations,  within  the  meaning  of  Section  1,  and  were, 
by  the  said  parties,  an  attempt  to  monopolize  and  a  monopoliza¬ 
tion  of  part  of  the  trade  or  commerce  among  the  several  States 
and  with  foreign  nations,  within  the  meaning  of  Section  2,  of  the 
Anti-trust  Act. 

The  United  States  Steel  Corporation  acquired,  as  hereinafter 
set  out,  the  control  or  ownership  of  all  the  aforesaid  companies 
and  properties. 

NATIONAL  STEEL  COMPANY. 

The  National  Steel  Company  was  incorporated  under  the  laws 
of  the  State  of  New  Jersey,  in  February,  1899,  and  issued  a  capital 
stock  of  $59,000,000.  It  acquired  the  principal  crude  steel  man¬ 
ufacturing  companies  west  of  the  Alleghenies,  chiefly  in  Ohio, 
other  than  those  owned  by  the  Federal  Steel  Company  and  by 
the  Carnegie  Steel  Company  (Ltd).  They  had  a  yearly  capacity 
of  about  1,800,000  tons  of  steel. 

Said  concerns,  before  and  up  to  the  said  consolidation,  except 
when  self-restrained  by  unlawful  pools  or  agreements,  had  com¬ 
peted  with  each  other  in  interstate  and  foreign  trade  and  com¬ 
merce  in  said  product. 

At  least  $5,000,000  of  the  common  stock  went  for  promotion. 

By  this  combination  it  controlled  approximately  12  per  cent 
of  the  steel  ingot  output  of  the  United  States. 

The  National  Steel  Company  by  the  said  consolidation,  came 
into  the  ownership  or  control  of  Ohio  Steel  Co.,  Youngstown, 
Ohio;  Shenango  Valley  Steel  Co.,  New  Castle,  Pa.;  Sharon  Iron 
Co.  (Ltd),  and  Buhl  Steel  Co.,  Sharon,  Pa.;  King,  Gilbert  & 
Warner  Co.,  Columbus,  Ohio;  Bellaire  Steel  Co.,  Bellaire,  Ohio, 
and  Mingo  works  of  iEtna  Standard  Iron  &  Steel  Co.,  Mingo 
Junction,  Ohio. 

The  purpose  and  effect  of  said  consolidation  were  a  combina¬ 
tion  between  said  consolidating  companies  and  the  National  Steel 
Company,  their  officers,  agents,  promoters  and  underwriters,  in 


10 


restraint  of  trade  and  commerce  among  the  several  States  and 
with  foreign  nations,  within  the  meaning  of  Section  1,  and  were 
by  the  said  parties  an  attempt  to  monopolize  and  a  monopoliza¬ 
tion  of  part  of  the  trade  or  commerce  among  the  several  States 
and  with  foreign  nations,  within  the  meaning  of  Section  2,  of  the 
Anti-trust  Act. 

Subsequent  to  its  formation  the  National  Steel  Company 
acquired  control  of  other  companies  and  concerns,  so  that  in 
addition  to  those  mentioned  above,  it  also  owned  or  controlled  at 
the  time  of  its  absorption  by  the  United  States  Steel  Corporation: 
Rosena  Furnace  Co.,  Thomas  Furnace  Co.,  Ohio  Iron  Co.,  thirty- 
three  and  one-third  per  cent  of  National  Mining  Co.,  Chapin 
Mining  Co.,  Winthrop  Iron  Co.,  Standard  Connellsville  Coke  Co., 
Continental  Coke  Co.,  Mutual  Transportation  Co.,  and  Menominee 
Transit  Co. 

It  also  acquired  800  acres  of  coking  coal  lands  in  Westmore¬ 
land  County,  Pa.,  and  a  one-sixth  interest  in  all  the  iron  ore  pro¬ 
duced  by  the  Oliver  Iron  Mining  Co.’ 

The  United  States  Steel  Corporation  acquired,  as  hereinafter  set 
out,  the  control  or  ownership  of  all  the  aforesaid  companies 
and  properties. 

AMERICAN  TIN  PLATE  COMPANY. 

The  American  Tin  Plate  Company  was  incorporated  under  the 
laws  of  the  State  of  New  Jersey,  in  December,  1898,  as  a  consoli¬ 
dation  of  thirty-nine  plants,  with  two  hundred  and  seventy-nine 
mills,  engaged  in  the  tin  plate  industry  in  the  United  States.  It 
issued  $46,000,000  of  capital  stock.  It  acquired  practically  every 
tin  plate  concern  in  the  United  States  and  secured  thereby  an 
almost  complete  monopoly  of  that  branch  of  industry. 

The  concerns  thus  combined,  before  and  up  to  the  said  con¬ 
solidation,  except  when  self-restrained  by  unlawful  pools  or  agree¬ 
ments,  had  competed  with  each  other  in  interstate  and  foreign 
trade  and  commerce  in  said  product. 

Ten  million  dollars  of  the  common  stock  went  to  the  organ¬ 
izers. 

The  following  companies,  or  their  plants,  were  acquired  by 
this  consolidation : 

iEtna  Standard  Iron  and  Steel  Company’s  Tin  Plate  Works, 
Bridgeport,  Ohio. 


11 


American  Tin  Plate  Company,  Elwood  and  Montpelier,  Ind. 
Atlanta  Steel  and  Tin  Plate  Company,  Atlanta,  Ind. 

Baltimore  Tin  Plate  Company,  Baltimore,  Md. 

Beaver  Tin  Plate  Company,  Lisbon,  Ohio. 

Blairsville  Bolling  Mill  and  Tin  Plate  Mill,  Blairsville,  Pa. 
Britton  Bolling  Mill  Company,  tin  plate  works  of,  Cleveland, 
Ohio. 

Canonsburg  Iron  and  Steel  Company,  Canonsburg,  Pa. 
Champion  Iron  &  Steel  Company,  Muskegon,  Mich. 
Cincinnati  Bolling  Mill  &  Tin  Plate  Company,  Cincinnati, 
Ohio. 

Crescent  Sheet  &  Tin  Plate  Company,  Cleveland,  Ohio. 
Cumberland  Steel  &  Tin  Plate  Company,  Cumberland,  Md. 
Ellwood  Tin  Plate  Company,  Ellwood  City,  Pa. 

Falcon  Tin  Plate  &  Sheet  Company,  Niles,  Ohio. 

Great  Western  Tin  Plate  Company,  Joliet,  Ill. 

Hamilton  &  Co.,  West  Newton,  Pa. 

Humbert  Tin  Plate  Company,  Connellsville,  Pa. 

Irondale  Steel  &  Iron  Company,  Middleton,  Ind. 

Johnstown  Tin  Plate  Company,  Johnstown,  Pa. 

La  Belle  Iron  Works,  tin  plate  works  of,  Wheeling,  W.  Va. 
Laughlin  Nail  Company,  Martin’s  Ferry,  Ohio. 

Marshall  Bros.  &  Co.,  Philadelphia,  Pa. 

Monongahela  Tin  Plate  Company,  Pittsburg,  Pa. 

Morewood  Company,  Gas  City,  Ind. 

Morton  Tin  Plate  Company,  Cambridge,  Ohio. 

National  Tin  Plate  Company,  Monessen,  Pa.,  and  Anderson,  Ind. 
Neshannock  Sheet  &  Tin  Plate  Company,  New  Castle,  Pa. 

New  Castle  Sheet  &  Tin  Plate  Company,  New  Castle,  Pa. 

Ohio  Biver  Sheet  &  Tin  Plate  Company,  Bochester,  Pa. 
Pennsylvania  Tin  Plate  Company,  New  Kensington,  Pa. 
Pittsburg  Tin  Plate  Works,  New  Kensington,  Pa. 

Beeves  Iron.  Company,  Canal  Dover,  Ohio. 

Shenango  Valley  Steel  Company,  tin  plate  works  of,  New 
Castle,  Pa. 

Star  Tin  Plate  Company,  Pittsburg,  Pa. 

United  States  Iron  &  Tin  Plate  Manufacturing  Company,  Mc¬ 
Keesport,  Pa. 

Wallace,  Banfield  &  Co.,  Irondale,  Ohio. 

Washington  Steel  &  Tin  Plate  Mills,  Washington,  Pa. 


12 


The  purpose  and  effect  of  said  consolidation  were  a  combination 
between  said  consolidating  companies  and  the  American  Tin 
Plate  Co.,  their  officers,  agents,  promoters  and  underwriters,  in 
restraint  of  trade  and  commerce  among  the  several  States  and 
with  foreign  nations  within  the  meaning  of  Section  1,  and  were 
by  the  said  parties  an  attempt  to  monopolize  and  a  monopoliza¬ 
tion  of  part  of  the  trade  or  commerce  among  the  several  States 
and  with  foreign  nations  within  the  meaning  of  Section  2,  of  the 
Anti-trust  Act. 

\  * 

The  United  States  Steel  Corporation  acquired,  as  hereinafter 
set  out,  the  control  or  ownership  of  all  the  aforesaid^  companies 
and  properties. 


AMERICAN  STEEL  HOOP  COMPANY. 

The  American  Steel  Hoop  Company  was  incorporated  under 
the  laws  of  the  State  of  New  Jersey,  in  April,  1899,  with  a  capital 
stock  of  $33,000,000,  and  brought  into  combination  under  one 
control  the  leading  concerns  engaged  in  the  production  of  cotton 
ties,  steel  bands,  hoops  and  like  products  in  the  United  States. 

At  least  $5,000,000  of  the  common  stock  went  for  promotion. 

The  concerns  thus  combined  before  and  up  to  the  said  con¬ 
solidation,  except  when  self-restrained  by  unlawful  pools  or 
agreements,  competed  with  each  other  in  interstate  and  foreign 
trade  and  commerce  in  said  products. 

The  said  company  acquired,  at  the  time  of  its  formation,  the 
following: 

Union  Iron  &  Steel  Co.,  Youngstown,  Warren  and  Girard, 
Ohio;  Isabella  Furnace  Co.,  Pittsburg,  Pa.;  Monessen  Steel  Co., 
Monessen,  Pa.;  J.  Painter  &  Sons,  Pittsburg,  Pa.;  Wm.  Clark  & 
Sons,  Pittsburg,  Pa.;  Lindsay  &  McCutcheon,  Pittsburg,  Pa.;  P. 
L.  Kimberly  Co.,  Sharon  and  Greenville,  Pa. ;  Pomeroy  Iron  & 
Steel  Co.,  Pomeroy,  Ohio.;  Portage  Iron  Co.  (Ltd.),  Duncansville, 
Pa.;  one-fifth  of  Mahoning  Ore  &  Steel  Co.,  Mahoning,  Pa,,  and 
one-third  of  National  Mining  Co. 

The  purpose  and  effect  of  said  consolidation  were  a  combina¬ 
tion  between  said  companies  and  the  American  Steel  Hoop  Com¬ 
pany,  their  officers,  agents,  promoters  and  underwriters  in  re¬ 
straint  of  trade  and  commerce  among  the  several  States  and  with 
foreign  nations  within  the  meaning  of  Section  1,  and  were  by  the 
said  parties  an  attempt  to  monopolize  and  a  monopolization  of 


13 


part  of  the  trade  or  commerce  among  the  several  States  and 
with  foreign  nations  within  the  meaning  of  Section  2,  of  the 
Anti-trust  Act. 

Shortly  thereafter  the  said  company  acquired  control  of  the  iEtna 
&  Montrose  Railroad  Co.,  fifty  per  cent  of  the  stock  of  the  Union 
Ore  Co.,  and  eight  and  one-third  per  cent  of  the  stock  of  the 
Pennsylvania  &  Lake  Erie  Dock  Co. 

The  United  States  Steel  Corporation  acquired,  as  hereinafter 
set  out,  the  control  or  ownership  of  all  the  aforesaid  companies 
and  properties. 


AMERICAN  SHEET  STEEL  COMPANY. 

The  American  Sheet  Steel  Company  was  incorporated  under 
the  laws  of  the  State  of  New  Jersey,  in  March,  1900,  and  took 
over  the  principal  manufacturers  of  sheet  steel  of  all  kinds. 
The  capital  stock  authorized  was  $26,000,000,  7  per  cent,  pre¬ 
ferred,  and  $26,000,000  common.  A  large  amount  of  the  capital 
stock  went  for  promotion. 

The  concerns  thus  combined,  before  and  up  to  the  said  consoli¬ 
dation,  except  when  self-restrained  by  unlawful  pools  or  agree¬ 
ments,  competed  with  each  other  in  interstate  and  foreign  trade 
and  commerce  in  said  products.  The  said  company  acquired,  at 
the  time  of  its  formation,  the  following : 

Apollo  Iron  &  Steel  Co.,  Appolo  and  V andergrift,  Pa. ;  Cambridge 
Iron  &  Steel  Co.,  and  roofing  plant  of  Cambridge  Manufacturing 
Co.,  Cambridge,  Ohio;  Canton  Rolling  Mill  Co.,  Canton,  Ohio; 
Chartiers  Iron  &  Steel  Co.,  Carnegie,  Pa. ;  Corning  Steel  Co.,  Ham¬ 
mond,  Ind.;  Dennison  Rolling  Mill  Co.,  Dennison,  Ohio ;  Dres¬ 
den  Iron  &  Steel  Sheet  Company,  Dresden,  Ohio ;  Falcon  Iron  & 
Nail  Co.,  Niles,  Ohio  ;  Hyde  Park  Iron  &  Steel  Co.,  Hyde  Park, 
Pa. ;  Kirkpatrick  &  Co.,  L’t’d.,  Leechburg,  Pa. ;  P.  H.  Laufman 
&  Co.,  Paulton,  Pa.;  Midland  Steel  Co.,  Muncie,  Ind.;  iEtna 
Standard  Iron  &  Steel  Co.,  Sheet  Steel  Works,  Bridgeport,  Ohio; 
New  Philadelphia  Iron  &  Steel  Co.,  New  Philadelphia,  Ohio ;  Old 
Meadow  Rolling  Mill  Co.,  Scottdale,  Pa. ;  Piqua  Rolling  Mill 
Co.,  and  roofing  plant  of  Cincinnati  Corrugated  Co.,  Piqua, 
Ohio;  Pittsburg  Steel  Mfg.  Co.,  Shousetown,  Ohio;  Scott¬ 
dale  Iron  &  Steel  Co.  (L’t’d,)  Scottdale,  Pa.;  Struthers  Iron 
*  &  Steel  Co.,  Struthers,  Ohio ;  Chester  Rolling  Mill  Co.,  Chester, 
W.Ya. ;  Coshocton  Rolling  Mill  Co.,  Coshocton,  Ohio;  W.  Dewees 


14 


Wood  Co.,  McKeesport  Pa.,  and  Wellsville,  Ohio;  Peeves  Iron 
Co.,  Canal  Dover,  Ohio;  West  Penn  Sheet  Steel  Works,  Leech- 
burg,  Pa.,  and  Saltsburg  Polling  Mill  Co.,  Saltsburg,  Pa. 

The  purpose  and  effect  of  said  consolidation  were  a  combina¬ 
tion  between  said  consolidating  companies  and  the  American 
Sheet  Steel  Company,  their  officers,  agents,  promoters  and  under¬ 
writers  in  restraint  of  trade  and  commerce  among  the  several 
States  and  with  foreign  nations,  within  the  meaning  of  Section 
1,  and  were  by  the  said  parties  an  attempt  to  monopolize  and  a 
monopolization  of  part  of  the  trade  or  commerce  among  the 
several  States  and  with  foreign  nations  within  the  meaning  of 
Section  2,  of  the  Anti-trust  Act. 

The  United  States  Steel  Corporation  acquired,  as  hereinafter 
set  out,  the  control  or  ownership  of  all  the  aforesaid  companies 
and  properties. 


III. 

CONDITIONS  LEADING  TO  FORMATION  OF  UNITED 
STATES  STEEL  CORPORATION. 

While  through  the  formation  of  the  companies  aforesaid, 
competition  was  largely  eliminated  in  their  respective  lines,  there 
was  in  1900,  and  up  to  the  time  when  effective  steps  were  taken 
to  absorb  all  of  these  concerns  by  the  United  States  Steel  Cor¬ 
poration,  active  competition  between  the  Carnegie  Company,  the 
Federal  Steel  Company  and  the  National  Steel  Company,  the 
three  principal  producers  of  crude  steel.  These  three  companies 
were  also  in  competition  with  some  of  the  other  said  consolidated 
companies  in  the  sale  of  the  lighter  finished  products.  The  suc¬ 
cess  achieved  and  the  power  gained  by  the  consolidations  afore¬ 
said  stimulated  these  companies  and  those  controlling  them  sev¬ 
erally,  to  larger  enterprise  and  more  ambitious  plans,  involving 
further  elimination  of  competition  and  restraint  of  trade  and 
commerce.  A  general  consolidation  was  brought  about  through 
the  defendent,  the  United  States  Steel  Corporation,  as  hereinafter 
set  out,  thereby  still  further  preventing  competition  which  was 
imminent. 

The  Carnegie  Company  and  the  Federal  Steel  Company  manu¬ 
factured  steel  rails,  some  other  heavy  finished  products  and  semi¬ 
finished  steel  products.  For  the  sale  of  their  semi-finished  pro- 


15 


ducts  they  were  dependent  on  other  manufacturers,  among  whom 
were  some  of  the  consolidated  companies  aforesaid. 

The  National  Steel  Company  was  in  the  same  condition,  except 
that  as  to  marketing  its  products  it  could  count  the  American 
Sheet  Steel  Company,  the  American  Steel  Hoop  Company  and 
the  American  Tin  Plate  Company,  as  customers,  on  account  of 
their  being  closely  affiliated  through  a  common  control. 

The  American  Steel  and  Wire  Company,  which  in  its  begin¬ 
ning  enjoyed  a  practical  monopoly  in  wire  products,  and  subse¬ 
quently  had  acquired  iron  and  coal  properties  and  a  vessel  fleet, 
was  mainly  dependent  on  other  producers  for  the  steel  billets 
used  in  making  its  product.  The  National  Tube  Company, 
which,  at  its  formation,  controlled  the  greater  part  of  the  pro¬ 
duction  of  wrought  pipe  and  tubes  in  the  United  States,  pur¬ 
chased  a  very  large  part  of  its  crude  steel. 

The  American  Sheet  Steel  Company,  the  American  Tin  Plate 
Company,  and  the  American  Steel  Hoop  Company,  were  only 
partially  protected  as  to  obtaining  their  raw  material  from  the 
National  Steel  Company  through  a  common  control. 

There  was  a  general  movement  upon  the  part  of  these  concerns 
to  control  their  raw  material  and  all  stages  of  the  manufacture  of 
their  products. 

For  example,  the  American  Steel  and  Wire  Company,  whose 
constituent  concerns  had  largely  patronized  the  Federal  Steel 
Company  and  the  Carnegie  Company,  planned  in  1900  to  make 
its  own  iron  and  steel. 

The  National  Tube  Company,  a  large  customor  of  the  Carnegie 
Company,  proposed  to  erect  additional  blast  furnaces  and  steel 
works. 

The  American  Tin  Plate  Company,  the  American  Sheet  Steel 
Company  and  the  American  Steel  Hoop  Company,  large  custom¬ 
ers  of  the  Carnegie  Company  and  other  makers  of  steel,  were 
rapidly  making  themselves  independent  through  the  increase  of 
the  crude  steel  capacity  of  the  National  Steel  Company  which 
secured  extensive  ore  and  coal  properties  and  a  fleet  of  Lake  ore 
vessels. 

Thus  competition  under  old  methods  of  doing  business  having 
been  restricted,  and  in  some  products  almost  entirely  destroyed 
threatened  to  make  a  new  way  and  reestablish  itself  in  vigorous 
life.  The  leaders  in  the  steel  industry  feared  the  breaking  down 


16 


of  the  restraints  upon  trade  and  the  overthrow  of  the  partial  or 
complete  monopolies  which  they  had  established. 

The  Carnegie  Company  and  the  Federal  Steel  Company  saw 
the  danger  of  their  former  customers  becoming  their  rivals. 
Both  of  these  companies  took  steps  looking  to  the  manufacture 
of  finished  products,  such  as  structural  material,  tubes  and 
universal  plates. 

About  the  close  of  the  year  1900,  the  Carnegie  interests 
announced  that  they  would  erect  an  immense  tube  plant  at 
Conneaut,  on  Lake  Erie.  A  period  of  greater  competition  had 
already  been  foreshadowed.  This  announcement  brought  affairs 
to  a  crisis.  A  “battle  of  the  giants”  was  discussed  in  the  daily 
press  and  in  the  trade  journals. 

If  each  of  these  actual  and  prospective  competitors  had  worked 
out  its  own  destiny  in  trade,  commerce  and  production,  unob¬ 
structed  by  combinations  or  agreements  entered  into'  for  the  pur¬ 
pose  of  restraining  competition  and  trade  and  commerce  among 
the  States,  and  between  the  States  and  foreign  countries,  new 
plants  would  have  been  established,  and  said  trade  and  com¬ 
merce  would  have  developed  under  different  conditions,  and  free 
from  restraints  which,  as  will  be  shown,  were  imposed  with  the 
purpose  and  effect  of  unduly  restraining  such  trade  and  com¬ 
merce  and  monopolizing  in  part  such  trade  and  commerce. 

An  opportunity  was  offered,  through  further  consolidation  and 
restriction  of  trade  and  commerce,  for  enormous  profits  as  a  re¬ 
ward  for  effecting  the  combination  and  as  a  result  of  the  floata¬ 
tion  of  inflated  stocks. 

On  account  of  its  announced  purpose,  which  contributed 
largely  toward  precipitating  the  crisis,  and  also  on  account  of 
its  great  strength,  it  was  manifest  that  in  order  to  form  an 
effective  combination  it  was  necessary  to  control  the  Carnegie 
Company. 

Considering  the  magnitude  of  the  entire  undertaking  it  was 
carried  to  a  conclusion  with  unprecedented  swiftness. 

Within  four  months  from  the  announcement  by  the  Carnegie 
Company  of  its  purpose  to  extend  its  activities  into  new  fields,  a 
new  corporation  was  formed,  which  is  the  United  States  Steel 
Corporation,  for  the  purpose  of  preventing  further  competition, 
and  eliminating  the  existing  competition  between  said  compa¬ 
nies. 


17 


In  pursuance  thereof,  by  about  April  1, 1901,  the  United  States 
Steel  Corporation  united  and  brought  under  one  control  all  of 
the  companies  heretofore  particularly  referred  to  and  their  prop¬ 
erties,  and  also  acquired  the  control  of  certain  other  companies 
in  1901,  as  hereinafter  shown. 

The  details  of  said  combination  will  now  be  given,  the  said 
United  States  Steel  Corporation  being  hereinafter  designated  as 
the  Corporation. 

IV. 

FORMATION  OF  UNITED  STATES  STEEL  CORPORA¬ 
TION. 

J.  P.  Morgan,  aside  from  the  prominent  part  taken  by  him  as 
a  member  of  the  firm  of  J.  P.  Morgan  &  Company,  who  were  syn¬ 
dicate  managers  in  charge  of  the  organization  of  the  Corporation, 
was  a  director  in  the  Federal  Steel  Company.  He  became  a 
member  of  the  first  Board  of  Directors  of  the  Corporation. 

Charles  Steele,  who  was  a  member  of  the  firm  of  J.  P.  Morgan 
and  Company,  and  acted  in  the  negotiations  for  the  consolidation, 
was  a  director  in  the  American  Bridge  Company  and  the  National 
Tube  Company,  and  became  a  member  of  the  first  Board  of 
Directors  of  the  Corporation. 

George  W.  Perkins  came  into  the  firm  of  J.  P.  Morgan  and 
Company  after  the  negotiations  for  the  first  combination  began. 
He  became  active  in  bringing  about  subsequent  combinations, 
herein  mentioned.  He  became  a  member  of  the  Board  of  Direc¬ 
tors  of  the  Corporation  in  1901. 

E.  H.  Gary  was  active  in  bringing  about  the  combination.  At 
the  time  of  the  merger  he  was  President,  Director  and  a  member 
of  the  Executive  Committee  of  the  Federal  Steel  Company.  He 
became  a  member  of  the  first  Board  of  Directors  of  the  Corpora¬ 
tion,  Chairman  of  the  Executive  Committee,  and  a  member  of 
the  Finance  Committee,  and  has  been  the  leading  person  in  con¬ 
trolling  its  affairs  throughout  its  existence. 

Charles  M.  Schwab  was  active  in  the  negotiations  leading  up 
to  the  formation  of  the  Corporation,  was  President  and  Director 
of  the  Carnegie  Company  when  absorbed,  and  became  the  first 
President  and  a  member  of  the  first  Board  of  Directors  of  the  Cor¬ 
poration. 


18 


Andrew  Carnegie  was  in  control  of  the  Carnegie  Company  of 
New  Jersey,  was  fully  advised  as  to  the  formation  of  the  Corpora¬ 
tion  and  its  character,  and  combined  in  the  plan  for  the  pur¬ 
pose  and  to  the  extent  of  transferring  to  it  the  control  of  the 
Carnegie  Company  of  New  Jersey. 

Henry  C.  Frick  was  prominent  in  the  Carnegie  Company,  was 
active  in  the  effort  to  sell  the  Carnegie  properties  and  merge 
them  in  the  Corporation,  and  became  a  member  of  the  first  Board 
of  Directors  of  the  Corporation. 

James  Gayley  was  a  director  in  the  Carnegie  Company,  partici¬ 
pated  in  the  formation  of  the  Corporation,  and  became  Vice  Presi¬ 
dent. 

William  H.  Moore,  J.  H.  Moore  and  Daniel  G.  Reid  were  active 
organizers  of  the  Corporation  and  controlled  the  terms  on  which 
the  American  Tin  Plate,  American  Steel  Hoop,  American  Sheet 
Steel  and  National  Steel  Companies  were  taken  over  by  the  Cor¬ 
poration. 

William  H.  Moore  and  Daniel  G.  Reid  became  members  of  the 
first  Board  of  Directors  of  the  Corporation. 

Edmund  C.  Converse  was  President  and  Director  of  the  National 
Tube  Company,  was  active  in  bringing  about  the  combination, 
and  became  a  member  of  the  first  Board  of  Directors  of  the  Cor¬ 
poration. 

Percival  Roberts,  Jr.,  was  President  and  Director  of  the  Ameri¬ 
can  Bridge  Company,  was  active  in  bringing  about  the  combina¬ 
tion,  and  became  a  member  of  the  first  Board  of  Directors  of  the 
Corporation. 

Norman  B.  Ream  was  a  director  of  the  Federal  Steel  Company, 
took  part  in  bringing  about  the  combination,  and  became  a  mem¬ 
ber  of  the  first  Board  of  Directors  of  the  Corporation. 

John  D.  Rockefeller  and  John  D.  Rockefeller,  jr.,  were  largely 
interested  in  the  Lake  Superior  Consolidated  Iron  Mines,  John 
D.  Rockefeller,  Jr.,  being  a  director  in  that  company.  Both  of 
them  participated  in  bringing  about  the  combination  and  became 
members  of  the  first  Board  of  Directors  of  the  Corporation. 

P.  A.  B.  Widener  was  a  director  in  the  American  Steel  and 
Wire  Company  of  New  Jersey,  took  part  in  bringing  about  the 
combination,  and  became  a  member  of  the  first  Board  of  Direct¬ 
ors  of  the  Corporation. 


19 


William  P.  Palmer  was  president  and  director  of  the  American 
Steel  and  Wire  Company  of  New  Jersey,  took  part  in  bringing 
about  the  combination,  and  continued  as  president  of  the  said 
Steel  and  Wire  Company  after  the  transfer  of  that  company  to  the 
Corporation. 

The  Corporation  was  organized  under  the  laws  of  New  Jersey, 
the  original  certificate  having  been  filed  at  Trenton,  February 
25,  1901.  An  amended  certificate  was  filed  April  1,  1901. 

The  authorized  capital  stock  was  $550,000,000,  seven  per  cent, 
cumulative  preferred,  and  $550,000,000  common. 

The  Corporation,  in  1901,  shortly  after  its  organization  had  been 
completed,  and  after  it  had  acquired,  in  1901,  the  properties  as 
hereinafter  shown,  had  a  capitalization  as  follows : 


Preferred  stock,  7%  cumulative .  $510,205,743 

Common  stock .  508,227,394 

Steel  Corporation  bonds .  303,450,000 

Underlying  bonds .  59,091,657 

Purchase  money  obligations  and  real 
estate  mortgages .  21,872,023 


Total . - .  $1,402,846,817 


The  Corporation  is  not  an  operating,  but  only  a  holding  com¬ 
pany.  In  1901,  it  acquired  practically  all  of  the  issue  of  capital 
stock  of  the  companies  named  below,  the  holders  of  such  stock 
receiving  in  exchange  for  each  $100  par  value  thereof,  the  amount 
set  opposite  thereto  in  preferred  or  common  stock  of  the  Corpora¬ 
tion,  at  par. 


20 


NAMES  OP  COMPANIES  AND  CLASSES  OF  STOCK  ACQUIRED. 

Amount  of  new 
stock  received  in 
par  value. 


PrefM  Common 
Stock.  Stock. 

Federal  Steel,  preferred  stock .  $110.00  . 

Federal  Steel,  common  stock . .  4.00  $107.50 

National  Tube,  preferred  stock .  125.00  * . 

National  Tube,  common  stock .  8.80  125.00 

A.  S.  &  W.  Co.,  N.  J.,  preferred  stock .  117.50  . 

A.  S.  &  W.  Co.,  N.  J.,  common  stock .  .  102.50 

National  Steel,  preferred  stock .  125.00  . 

National  Steel,  common  stock . 125.00 

American  Tin  Plate,  preferred  stock .  125.00  . 

American  Tin  Plate,  common  stock .  20.00  125.00 

The  Carnegie  Co.,  viz 

For  $64,000,000  of  stock .  153.50  141.00 

For  $96,000,000  of  stock  there  were  issued 
$144,000,000  of  United  States  Steel  collate¬ 
ral  trust  bonds. 

American  Steel  Hoop,  preferred  stock .  100.00  . 

American  Steel  Hoop,  common  stock .  100.00 

American  Sheet  Steel,  preferred  stock .  100.00  . 

American  Sheet  Steel,  common  stock . '. .  100.00 

American  Bridge,  preferred  stock . .  110.00  . 

American  Bridge,  common  stock .  105.00 

Lake  Superior  Consolidated  Iron  Mines .  135.00  135.00 

Shelby  Steel  Tube,  preferred  stock .  37.50  . 

Shelby  Steel  Tube,  common  stock .  .  25.00 


The  corporation  also  acquired  $159,450,000  of  the  Carnegie 
Company  collateral  trust  bonds,  for  which  an  equal  amount  of 
United  States  Steel  collateral  bonds  was  issued. 

The  Corporation  also  acquired  the  Bessemer  Steamship  Com¬ 
pany;  also  a  one-sixth  interest  in  the  stock  of  the  Oliver  Iron 
Mining  Company  and  the  Pittsburg  Steamship  Company,  the  re¬ 
maining  five-sixths  interest  in  these  two  stocks  being  owned  by 
the  Carnegie  Company. 

The  capitalization  was  many  millions  of  dollars,  not  less  than 
six  hundred  millions  of  dollars,  in  excess  of  the  value  of  the 
properties  thus  taken  over.  It  was  vastly  in  excess  of  the  amount 
upon  which  those  properties  under  normal  conditions  could  earn 
a  fair  return.  The  earnings  of  the  corporation  were  not  commen¬ 
surate  with  its  actual  capital,  nor  were  they  entirely  the  legitimate 


21 


fruits  of  the  earning  capacity  of  those  properties  separately  con¬ 
trolled,  however  well  administered,  but  were  to  a  very  large  ex¬ 
tent,  approximately  one-half,  the  result  brought  about  by  the 
power  exerted  over  trade  and  commerce  by  such  a  vast  combina¬ 
tion  of  capital,  the  restraint  imposed  upon  trade  and  commerce, 
the  suppression  of  competition,  the  influence  upon  the  control  of 
prices,  and  the  many  direct  and  indirect  advantages  derived  from 
the  cooperation  of  so  many  men  of  influence  in  trade  and  com¬ 
merce,  who  formerly  acting  in  rivalry  were  by  the  combination 
drawn  together  in  a  common  interest.  Consumers  and  the  public 
at  large  were,  through  the  power  created  and  exerted  by  such  a 
vast  combination,  compelled  to  pay  an  unlawful  tribute  of  many 
millions  of  dollars  annually  to  the  Corporation. 

Much  stock  was  issued  on  an  inflated  basis  in  exchange  for 
stock  acquired  in  absorbed  companies,  which  stock  itself  had  been 
issued  upon  a  partly  inflated  basis,  and  of  the  balance,  many 
millions  of  dollars  were  a  reward  for  mere  promotion  and  under¬ 
writing. 

In  the  direct  exchange  of  securities  the  Corporation  issued 
$1,191,882,532  of  stock  and  bonds  in  exchange  for  a  total  of 
$881,224,405  stocks  of  the  constituent  companies  and  Carnegie 
Company  bonds. 

The  carrying  through  of  the  consolidation  was  entirely  under 
the  supervision  of  J.  P.  Morgan  &  Co.,  as  syndicate  managers. 
The  syndicate  turned  over  to  the  Corporation  $25,000,000  in  cash, 
which  constituted  all  that  was  added  of  intrinsic  value  to  the 
properties  combined,  except  for  $3,000  cash  paid  in  by  the  incor¬ 
porators  and  sundry  stocks  of  a  par  value  of  $174,000.  For  this 
consideration,  and  its  expenses,  services,  and  risk,  the  syndicate  re¬ 
ceived  $64,998,768  (par  value)  of  preferred,  and  $64,998,837  (par 
value)  of  common  stock  of  the  Corporation.  This  enomous  take¬ 
out  was  possible  because  the  syndicate  managers  and  those  most 
influential  in  effecting  the  combination  were  prominently  iden¬ 
tified  with  the  management  of  several  of  the  constituent  compa¬ 
nies,  and  afterwards  with  the  control  of  the  Corporation  itself. 

The  underwriting  syndicate  included  several  who  variously 
were  officers  or  directors  of  the  companies  which  were  combined. 
The  total  amount  of  the  new  capitalization  representing  pay¬ 
ments  in  stock  to  syndicates  as  promoters  for  organizing  the  new 
corporation  and  the  previous  combinations  which  it  took  over, 


22 


exceeded  $150,000,000,  after  allowing  for  new  capital  contributed 
and  reasonable  expenses. 

The  new  inflated  capitalization  of  the  Corporation  exceeded  the 
old  inflated  capitalization  of  the  constituent  concerns,  plus  the 
new  cash  capital  provided  and  sundry  stocks  as  above  mentioned, 
by  $415,481,732,  or  by  over  45  per  cent. 

The  main  prospect  for  maintaining  earnings  on  the  many 
millions  given  for  promotion  and  issued  in  excess  of  valuation 
was  the  power  in  the  business  achieved  by  combination,  the 
potency  of  vast  aggregation  of  capital,  the  affiliations  brought 
about  with  powerful  banking  and  transportation  companies  and 
the  direct  and  indirect  control  of  trade  that  thereby  ensued.  This 
was  a  fictitious  basis  resting  on  unlawful  combination. 

The  value  of  stock  thus  issued  largely  depended  upon  earnings 
largely  based  upon  subjecting  the  public  to  conditions  which 
could  only  continue  by  an  abuse  of  the  public. 

The  $160,000,000  in  bonds  of  the  Carnegie  Company,  except 
$550,000  were  exchanged  for  a  like  amount  of  the  bonds  of  the 
Corporation.  The  stock  holdings  in  said  company  of  Andrew 
Carnegie,  Mrs.  Lucy  C.  Carnegie  and  George  Lauder,  amounting 
to  $96,000,000  par  value,  were  exchanged  for  $144,000,000,  par 
value  in  first  mortgage  bonds  of  the  Corporation.  The  remainder 
of  the  Carnegie  stock,  $64,000,000,  par  value,  was  exchanged  for 
$98,277,120  par,  in  preferred  stock,  and  $90,279,040  par,  in  the 
common  stock  of  the  Corporation.  There  was  given  for  the 
$160,000,000  par  value  of  stock  and  $159,450,000  bonds  of  the 
Carnegie  Company,  $303,450,000  of  bonds  and  $188,556,160  of 
stock  of  the  Corporation,  making  a  capitalization  of  $492,006,160 
in  exchange  for  one  of  $319,450,000. 

The  value  of  the  tangible  property  of  the  Carnegie  Company  did 
not  exceed  $160,000,000.  The  books  of  the  Carnegie  Steel  Com¬ 
pany,  L’t’d,  showed  that  the  net  value  on  the  31st  day  of  Decem¬ 
ber,  1899,  of  the  assets  was  $75,610,104.96.  This,  to  a  large 
extent,  represented  the  actual  cost  of  the  property  as  shown 
in  the  balance  sheets  of  the  company,  and  the  same  was  a  full, 
fair  and  accurate  valuation.  This  statement  from  the  books 
was  verified  under  oath  b}r  Andrew  Carnegie  and  other  mem¬ 
bers  of  the  company.  Before  the  Corporation  was  formed,  and 
within  three  years  prior  thereto,  H.  C.  Frick  obtained  an  option 
upon  the  Carnegie  property,  at  the  price  of  $160,000,000.  He 


23 


proposed  the  purchase  to  J.  P.  Morgan,  who  declined  it  upon  the 
ground  that  the  price  was  too  high.  And  yet,  when  the  plan 
was  made  to  bring  all  of  these  properties  under  one  great  com¬ 
bination  and  get  rid  of  Mr.  Carnegie  as  a  competitor,  Mr.  Morgan 
and  associates  paid  not  less  than  $492,006,160  for  substantially 
the  same  property  which  he  but  a  short  time  before  did  not  con¬ 
sider  worth  $160,000,000. 


V. 

CAPACITY  AND  EXTENT  OF  PROPERTIES  BROUGHT 
UNDER  COMBINATION  IN  1901. 

At  its  organization  the  Corporation  through  the  stocks  trans¬ 
ferred  to  it,  acquired  works  with  an  annual  capacity  of  over  9,400,- 
000  tons  of  steel  ingots,  and  more  than  7,700,000  tons  of  finished 
rolled  iron  and  steel  products.  The  proportions  of  output  of  prin¬ 
cipal  iron  and  steel  products  produced  by  the  Corporation  and  by 
other  companies  in  the  United  States,  in  1901,  were  as  follows: 

Steel  Corpor-  Independent 
ations  per-  companies’ 
centage  1901  percentage 


Pig  Iron,  spiegel  and  ferro .  43.2  56.8 

Steel  ingots  and  castings .  65.7  34.3 

Rails .  59.8  40.2 

Structural  shapes .  62.2  37.8 

Plates  and  sheets  of  all  kinds  (in¬ 
cluding  sheets  for  tinning,  gal¬ 
vanizing  and  other  coatings) .  64.6  35.4 

Black  plate  produced  in  tin  mills  79.8  20.2 

Coated  tin-mill  products .  73.1  26.9 

Black  and  coated  sheets  produced 

in  sheet-mills .  67.3  32.7 

Wire  rods .  77.7  22.3 

Wire  nails .  68.1  31.9 

Wrought  pipe  and  tubes  capacities  57.2  42.8 

Seamless  tubes  capacities .  82.8  17.2 


It  also  acquired  several  railroads  with  over  one  thousand 
miles  of  main  track  and  a  large  mileage  of  second  track  and  sid¬ 
ings,  a  fleet  of  112  Lake  ore  vessels,  iron  ore  reserves  in  the  Lake 
region,  estimated  by  the  Corporation  at  over  500,000,000  tons, 
more  than  50,000  acres  of  coking  coal  lands,  with  a  great  acreage 
of  other  grades  of  coal,  and  besides,  numerous  miscellaneous  pro¬ 
perties. 

In  1902,  the  President  of  the  Corporation,  Mr.  Schwab,  with 


24 


the  purpose  of  justifying  the  capitalization,  valued  the  ore  at 
$700,000,000.  This  was  a  great  over-estimate  of  the  actual 
value  of  the  iron  ore  under  free  commercial  conditions,  and 
could  only  be  sustained  as  an  artificial  valuation  produced  by 
the  power  for  monopoly  of,  and  restraint  of  trade  and  commerce 
arising  from,  such  large  holdings  under  one  control. 

VI. 

ACQUISITONS  SUBSEQUENT  TO  THE  ORIGINAL 
COMBINATION. 

THE  AMERICAN  BRIDGE  COMPANY. 

This  company  was  incorporated  under  the  laws  of  New  Jersey, 
in  April,  1900,  and  was  a  consolidation  of  the  following  manu¬ 
facturing  companies  or  properties: 

A.  &  P.  Roberts  Co.  (Pencoyd  Iron  Works),  Philadelphia,  Pa. ; 
Keystone  Bridge  Works,  formerly  of  the  Carnegie  Company, 
Pittsburg,  Pa.;  Berlin  Iron  Bridge  Co.,  East  Berlin,  Conn.;  Post  & 
McCord,  Brooklyn,  N.  Y.;  Elmira  Bridge  Co.,  Elmira,  N.  Y.; 
Union  Bridge  Co.,  Athens,  Pa.;  Edge  Moor  Bridge  Works,  Wil¬ 
mington,  Del.;  Lassig  Bridge  &  Iron  Works,  Chicago,  Ill.;  Shif¬ 
tier  Bridge  Co.,  Pittsburg,  Pa.;  Detroit  Bridge  &  Iron  Works, 
Detroit,  Mich.;  Rochester  Bridge  &  Iron  Works,  Rochester,  N.Y. ; 
Groton  Bridge  &  Manufacturing  Co.,  Groton,  N.  Y.;  Youngstown 
Bridge  Co.,  Youngstown,  Ohio;  J.  G.  Wagner  Co.  (bridge  and 
structural  plant),  Milwaukee,  Wis. ;  Wrought  Iron  Bridge  Co., 
Canton,  Ohio;  New  Columbus  Bridge  Co.,  Columbus,  Ohio;  Gil- 
lette-Herzog  Mfg.  Co.,  Minneapolis,  Minn.;  LaFayette  Bridge  Co., 
LaFayette,  Ind.;  Pittsburg  Bridge  Co.,  Pittsburg,  Pa.;  Schultz 
Bridge  &  Iron  Co.,  Pittsburg,  Pa.;  Buffalo  Bridge  &  Iron  Works, 
Buffalo,  N.  Y.;  Koken  Iron  Works,  St.  Louis,  Mo.;  Hilton  Bridge 
Construction  Co.,  Albany,  N.  Y.;  Horseheads  Bridge  Co.,  Horse- 
heads,  N.  Y. ;  American  Bridge  Works,  Chicago,  Ill. ;  New  Jersey 
Steel  &  Iron  Co.,  Trenton,  N.  J. ;  Toledo  Bridge  Co.,  Toledo,  Ohio ; 
Nelson  &  Buchanan  Co.,  Chambersburg,  Pa. 

The  said  companies  were  competitors  and  controlled  a  very 
large  part — more  than  a  majority — of  the  bridge  construction  of 
the  United  States.  There  was  issued  over  $60,000,000  of  stock, 
par  value. 


25 


The  said  American  Bridge  Company  had  acquired  and  exer¬ 
cised  a  practical  monopoly  in  the  bridge  business  of  the  United 
States. 

The  purpose  and  effect  of  said  consolidation  were  a  combina¬ 
tion  between  said  consolidating  companies  and  the  American 
Bridge  Company,  their  officers,  agents,  promoters  and  under¬ 
writers,  in  restraint  of  trade  and  commerce  among  the  several 
States  and  with  foreign  nations,  within  the  meaning  of  Section 
1,  and  were  by  the  said  parties  an  attempt  to  monopolize  and  a 
monopolization  of  part  of  the  trade  or  commerce  among  the 
several  States  and  with  foreign  nations,  within  the  meaning  of 
Section  2,  of  the  Anti-trust  Act. 

The  said  company,  together  with  the  control  of  all  the  said 
consolidated  companies  and  their  properties,  was  acquired  by  the 
Corporation  in  1901.  For  each  share  of  its  preferred  stock,  par 
$100,  was  given  $110  in  the  preferred  stock  of  the  Corporation, 
and  for  each  share  of  its  common  stock,  par  $100,  there  was  given 
$105  in  common  stock  of  the  Corporation.  By  this  acquisition 
of  this  large  monopolistic  combination,  which  was  a  large  con¬ 
sumer  of  steel  products  for  the  sale  of  which  there  was  competi¬ 
tion,  the  Corporation  added  greatly  to  its  strength  and  power  to 
restrain  competition  and  trade  and  commerce. 

LAKE  SUPERIOR  CONSOLIDATED  IRON  MINES. 

This  company  was  incorporated  under  the  laws  of  the  State  of 
New  Jersey  in  1893,  to  acquire  and  operate  mines  chiefly  in  Min¬ 
nesota.  It  combined  a  large  number  of  important  mining  com¬ 
panies  and  properties  which  previously  were  competitive.  The 
purpose  and  effect  of  said  combination  were  a  restraint  of  trade 
and  commerce  and  a  monopolization  of  part  of  the  trade  or  com¬ 
merce  within  the  meaning  of  the  Anti-trust  Act. 

It  was  acquired  by  the  Corporation  in  April,  1901.  When  ab¬ 
sorbed,  the  outstanding  stock  of  the  company  was  $29,424,594. 
The  stock  of  the  company  was  heavily  watered.  The  stock  of 
this  combination  was  exchanged  for  stock  in  the  Corporation  on 
the  basis  of  $135  of  preferred  and  $135  of  common  stock  of  the 
Corporation  for  each  $100. 

The  company  had  in  1901,  from  300,000,000  to  400,000,000 
tons  of  ore,  part  leased  and  part  owned  in  fee.  It  owned  the 
entire  capital  stock  of  the  Duluth,  Missabe  &  Northern  Railway 


26 


Co.,  amounting  to  $2,512,500.  This  road  extended  from  Duluth 
into  the  Mesabi  range  and  chiefly  transported  ore.  It  operated 
at  a  low  cost.  Its  earnings  were  high.  It  was  a  very  important 
acquisition  to  the  Corporation.  The  control  of  this  road,  with 
that  of  the  Duluth  &  Iron  Range  Railroad  gave  the  Corporation 
a  very  effective  control  of  ore  transportation  in  the  Minnesota 
ore  regions,  not  only  with  respect  to  its  own  production,  but  also 
to  that  of  many  of  its  competitors. 

BESSEMER  STEAMSHIP  COMPANY. 

This  was  the  leading  ore  vessel  interest  on  the  Great  Lakes. 
The  company  owned  fifty-six  vessels,  with  a  combined  capacity 
of  about  228,600  tons  per  trip.  Its  properties  were  acquired  in 
1901  by  the  Corporation  for  $8,500,000  in  cash. 

SHELBY  STEEL  TUBE  COMPANY. 

In  1897  the  Shelby  Steel  Tube  Company  was  incorporated  under 
the  laws  of  Pennsylvania.  It  was  a  consolidation  of  several  seam¬ 
less  tube  companies.  The  combination  produced  about  90  per 
cent,  of  the  entire  output  of  the  country.  In  1899  several  other 
companies  were  acquired.  In  1900  the  Shelby  Steel  Tube  Com¬ 
pany  was  reorganized  under  the  laws  of  New  Jersey.  It  had 
obtained  a  practical  monopoly  by  -uniting  under  one  combina¬ 
tion  concerns  which  were  natural  competitors  and  which  had 
until  said  combination  competed  with  each  other  except  when 
self-restrained  by  unlawful  pools  and  agreements.  Its  authorized 
capital  stock  was  $15,000,000.  Of  this  $1,305,900  was  issued  for 
fees,  expenses,  organization,  etc. 

The  purpose  and  effect  of  said  consolidation  were  a  combina¬ 
tion  between  said  consolidating  companies,  their  officers  and 
agents,  in  restraint  of  trade  and  commerce  among  the  several 
States  and  with  foreign  nations,  within  the  meaning  of  Section  1, 
and  were  by  the  said  parties  an  attempt  to  monopolize  and  a 
monopolization  of  part  of  the  trade  and  commerce  among  the 
several  States  and  with  foreign  nations  within  the  meaning  of 
Section  2,  of  the  Antitrust  Act. 

The  control  of  the  Shelby  Steel  Tube  Company  was  acquired  by 
the  Corporation  in  August,  1901,  by  an  exchange  of  stock,  the 
Corporation  giving  of  its  stock  $1,791,038  preferred  and  $2,004,550 
common  for  practically  the  entire  stock  of  the  Shelby  Company. 

Through  this  acquisition  the  Corporation  got  rid  of  a  competi- 


27 


tor  of  its  constituent  company,  the  National  Tube  Company, 
and  established  its  supremacy  in  the  seamless  tubing  branch  of 
the  steel  industry. 

OLIVER  IRON  MINING  COMPANY,  PITTSBURG  STEAMSHIP  COMPANY 
AND  POCAHONTAS  COAL  LANDS. 

In  addition,  the  Corporation,  shortly  after  its  organization 
acquired  a  one-sixth  interest  in  the  Oliver  Iron  Mining  Com¬ 
pany  and  the  Pittsburg  Steamship  Company,  the  remaining 
five-sixths  interest  in  these  concerns  being  owned  by  its  con¬ 
stituent,  the  Carnegie  Company. 

In  the  fall  of  1901,  it  secured  by  lease,  about  50,000  acres  of 
best  Pocahontas  coking  and  fuel  coal. 

UNION  STEEL  COMPANY. 

The  Union  Steel  Company  was  incorporated  under  the  laws  of 
Pennsylvania  in  November,  1899,  with  $1,000,000  capital  stock. 
Its  plant  was  located  at  Donora,  Pa.,  and  was  started  for  the  pur¬ 
pose  of  manufacturing  wire  rods,  wire  and  nails.  It  acquired 
considerable  ore  property  through  the  Donora  Mining  Company, 
a  subsidiary  company  with  $500,000  capital  stock.  It  also  se¬ 
cured  large  tracts  of  coking  and  steam  coal  in  the  Connellsville 
region.  The  Union  Steel  Company  was  an  important  competitor 
of  the  Corporation. 

The  Sharon  Steel  Company  was  incorporated  under  the  laws 
of  Pennsylvania,  in  October,  1899,  to  erect  a  steel  plant  at  Sharon, 
Pa.  Its  plant  was  enlarged  so  as  to  manufacture,  in  addition  to 
pig-iron  and  heavy  semi-finished  steel  products,  rods,  wire  and  wire 
nails.  The  company  also  commenced  the  construction  of  tin 
plate  mills  through  a  subordinate  company,  the  Sharon  Tin 
Plate  Company.  The  original  capitalization  of  the  Sharon  Steel 
Company  wTas  three  millions  of  dollars,  which  was  increased  to 
six  millions.  The  company  had  blast  furnaces,  open  hearth  fur¬ 
naces,  continuous  wire-rod  mills,  and  wTas  undertaking  the  con¬ 
struction  of  a  wrought  steel  pipe  plant.  It  had  acquired  a  valu¬ 
able  ore  property  on  the  Mesabi  Range  and  had  long-time  con¬ 
tracts  with  the  Minnesota  Iron  Company  for  a  supply  of  ore.  It  had 
also  secured  a  large  tract  of  coking  coal  land  in  the  Connellsville 
region  and  had  other  coal  lands  elsewhere.  It  also  owned  a  lime¬ 
stone  property  and  terminal  railroad  property.  Its  operations  were 
such  as  brought  it  into  sharp  competition  with  the  Corporation. 


28 


In  November,  1902,  a  merger  was  announced  of  the  Union 
Steel  Company  and  the  Sharon  Steel  Company,  under  the  name 
of  the  Union  Steel  Company,  with  a  capitalization  of  fifty  mil¬ 
lions  of  dollars,  thus  forming  the  largest  consolidation  in  the 
steel  industry  proper  which  had  been  effected  since  the  organiza¬ 
tion  of  the  Corporation  itself.  The  new  concern  had  a  pig-iron 
capacity  of  about  750,000  tons  yearly,  and  a  steel  ingot  capacity 
of  about  850,000  tons  yearly.  With  the  announcement  of  the 
merger  were  coupled  intimations  that  plans  were  projected  for 
constructing  other  important  works  as  well  as  the  acquisition  of 
other  concerns  then  engaged  in  the  manufacture  of  rods,  wire 
products,  sheets  and  pipes.  There  were  also  rumors  that  the  new 
concern  might  construct  a  railroad  from  Lake  Erie  to  the  Con- 
nellsville  coke  region,  with  connections  with  the  company’s 
plants.  Within  a  month  from  this  merger  the  Corporation  pur¬ 
chased  the  entire  property  through  the  issue  of  $45,000,000  of 
bonds  of  the  Union  Steel  Company,  guaranteed  by  the  Corpora¬ 
tion.  Of  this  total,  $29,113,500  were  issued  at  the  time  for  the 
property,  $8,512,500  were  sold  to  the  vendors,  to  be  paid  for  in 
cash  at  par  under  the  agreement,  while  $3,500,000  were  reserved 
to  retire  bonds  outstanding  against  the  Sharon  properties,  and 
$3,874,000  were  reserved  for  future  construction  and  improve¬ 
ments.  The  price  paid  for  these  properties  was  greatly  in  excess 
of  the  cost  to  the  Union  Steel  Company  and  the  Sharon  Steel 
Company  and  was  in  excess  of  their  actual  value  at  the  time 
they  were  taken  over  by  the  Corporation.  The  Corporation  de¬ 
sired  to  eliminate  the  competition  of  influential  interests  back  of 
the  Union  concern,  particularly  that  of  H.  C.  Frick. 

The  Union  Steel  Company  organized  in  1899,  and  the  Sharon 
Steel  Company,  organized  in  the  same  year,  were  competitors, 
and  their  combination  in  the  new  Union  Steel  Company  was  in 
restraint  of  trade  and  commerce  among  the  several  States  and 
with  foreign  countries  and  a  monopolization  of  a  part  of  the 
trade  or  commerce  among  the  several  States  and  with  foreign 
countries,  within  the  meaning  of  the  Anti-trust  Act. 

TROY  STEEL  PRODUCTS  COMPANY. 

The  American  Steel  &  Wire  Company,  one  of  the  constituents 
of  the  Corporation,  controlled  and  directed  by  it,  acquired  as  of 
January  1,  1903,  the  entire  issue  of  capital  stock  and  first  mort- 


29 


gage  bonds  of  the  Troy  Steel  Products  Company,  a  competitor 
which  owned  three  blast  furnaces,  steel  works,  and  a  rolling  mill, 
situated  in  the  State  of  New  York. 

THE  CLAIRTON  STEEL  COMPANY. 

In  May,  1904,  the  Corporation  acquired  the  entire  capital  stock 
of  the  Clairton  Steel  Company,  formerly  owned  by  the  Crucible 
Steel  Company.  Coupled  with  this  transaction  was  a  contract 
by  which  the  Crucible  Steel  Company  was  to  secure  a  large 
amount  of  pig  iron  and  billets  from  the  Corporation  for  a  period 
of  ten  years,  which  contract  was  in  restraint  of  trade  and  com¬ 
merce  within  the  meaning  of  the  Anti-trust  Act.  The  Clairton 
Steel  Company,  in  addition  to  its  manufacturing  plant,  with  a 
capacity  of  475,000  tons  of  pig  iron  and  400,000  tons  of  steel  ingots 
yearly,  owned  or  leased  very  large  quantities  of  ore  in  the  Lake 
Superior  region  and  valuable  deposits  of  coking  coal.  The  Cor¬ 
poration  thus  got  rid  of  a  competitor,  and  its  monopolistic  control 
of  such  ore  and  coal  was  thus  increased. 

GREAT  NORTHERN  ORE  LEASE. 

In  the  early  part  of  1907,  the  Great  Northern  Railway  interests, 
which  had  acquired  control  of  immense  tonnages  of  ore  by  pur¬ 
chase  or  lease,  caused  to  be  transferred  by  lessor  companies  con¬ 
trolled  by  it,  viz: 

West  Missabe  Land  Co.,  Limited. 

Wright  Land  Co.,  Limited. 

Davis  Land  Co.,  Limited. 

Wells  Land  Co.,  Limited. 

Stone  Land  Co.,  Limited. 

Wabigon  Iron  Co. 

Minosin  Iron  Co. 

Nibiwa  Iron  Co. 

Wenona  Iron  Co. 

Minawa  Iron  Co. 

Leonard  Iron  Mining  Co. 

Arthur  Iron  Mining  Co. 

Fillmore  Iron  Mining  Co. 

Harrison  Iron  Mining  Co. 

Jackson  Iron  Mining  Co. 

Polk  Iron  Mining  Co. 

Tyler  Iron  Mining  Co. 

Van  Buren  Iron  Mining  Co. 

the  larger  part  of  these  holdings  by  lease  to  the  Great  Western 
Mining  Company,  a  subsidiary  of  the  Corporation,  the  perform- 


30 


ance  of  the  stipulations  of  the  lease  being  guaranteed  by  the  Cor¬ 
poration.  In  said  lease,  Louis  W.  Hill,  Janies  N.  Hill,  Walter  J. 
Hill,  Edward  T.  Nichols,  and  J.  H.  Gruber  joined  as  trustees. 
The  Corporation  agreed  to  mine  the  ore  and  ship  it  over  the 
Great  Northern  Railway,  paying  therefor  a  royalty.  It  was  pro¬ 
vided  that  the  Corporation  might  cancel  the  lease  January  1, 
1915,  on  giving  two  years  written  notice.  The  Corporation,  by 
this  transaction,  desired  to  prevent  this  ore  either  from  being 
mined  and  sold  to  independent  producers,  or  from  being  utilized 
to  build  up  a  new  and  dangerous  competitor  in  the  iron  and  steel 
business.  The  practical  effect  was  to  forestall  competition  and 
greatly  increase  the  Corporation’s  control  of  the  ore  resources  of 
the  country.  The  royalty  agreed  to  be  paid  was  unprecedentedly 
large,  thus  showing  the  extent  to  which  the  Corporation  was 
willing  to  go  to  prevent  this  ore  falling  into  the  hands  of  com¬ 
petitors.  By  this  acquisition  the  Corporation  strengthened  its 
dominating  position.  In  1907,  the  holdings  of  the  Corporation 
in  Minnesota,  which  State  includes  the  Mesabi  and  Vermillion 
ranges,  amounted  to  about  913,000,000  tons,  or  75  per  cent  of  the 
total  ore  deposits  of  the  State.  Its  proportion  of  ore  of  the  whole 
Lake  Superior  region  was  approximately  the  same.  Authorita¬ 
tive  data  submitted  to  the  Senate  Finance  Committee  in  1909, 
with  the  Corporation’s  consent,  showed  that  the  Corporation 
itself  then  reckoned  on  about  1,625,000,000  tons  of  Lake  ore,  of 
which  1,258,000,000  tons  were  of  the  current  commercial  standard, 
which  quantity  was  approximately  seventy-five  per  cent,  of  the 
total  commercially  available  ore  in  the  entire  Lake  Superior 
region. 

The  purpose  and  effect  of  said  lease  were  to  shut  off  competi¬ 
tion  by  preventing  the  establishment  of  a  competitor,  to  secure  an 
undue  power  over  the  steel  business  by  controlling  the  source  of 
supply  of  ore  by  taking  it  out  of  the  market,  and  to  restrain  trade 
and  commerce,  and  a  monopolization  within  the  meaning  of  the 
Anti-trust  Act. 

Petitioner  has  been  informed  by  the  Corporation  that  its  Fi¬ 
nance  Committee,  on  October  17,  1911,  unanimously  decided  to 
cancel  said  lease.  However,  under  the  terms  of  said  lease  no 
such  cancellation  can  take  effect  before  January  1,  1915,  and 
there  is  no  limitation  upon  the  amount  of  ore  that  can  in  the 
meantime  be  taken  out  by  the  Corporation. 


31 


TENNESSEE  COAL,  IRON  &  RAILROAD  COMPANY. 

In  1907,  the  Corporation  acquired  the  control  and  almost  the 
entire  ownership  of  the  Tennessee  Coal,  Iron  &  Railroad  Com¬ 
pany  ,  which  will  hereinafter  be  called  the  Tennessee  Company. 
The  properties  of  this  company  were  located  mainly  in  Alabama 
and  Tennessee. 

Owing  to  the  character  of  its  coal  and  iron  deposits,  their  loca¬ 
tion,  and  that  of  limestone,  with  reference  to  each  other  and  to 
furnaces  and  transportation,  the  Tennesse  Company  could  manu¬ 
facture  pig  iron  cheaper  than  it  could  be  made  in  any  other 
part  of  the  United  States.  On  account  of  its  vast  holdings  of 
coal  and  iron  properties,  the  steady  growth  of  the  manufactur¬ 
ing  interests  of  the  South,  the  fact  that  the  known  commercially 
available  coal  and  iron  deposits  of  the  United  States  had  been 
almost  entirely  acquired  by  manufacturing  companies  looking  to 
their  development,  the  gradual  overlapping  of  the  zones  of  com¬ 
petition,  and  its  control  by  a  strong  and  aggressive  syndicate  of 
capitalists,  it  was  a  strong  probable  future  competitor  of  the 
Corporation.  Most  of  the  rails  in  the  United  States  had  been 
made  out  of  bessemer  ores.  On  account  of  accidents  attributed  to 
inherent  weakness  in  such  rails,  a  demand  arose  for  an  open 
hearth  rail,  and  for  such  process  the  ores  owned  by  the  Tennessee 
Company  were  available.  In  1907,  a  sensation  was  created  in  the 
steel  rail  market  by  E.  H.  Harriman,  who  controlled  a  large 
railroad  mileage,  ordering  from  the  Tennessee  Company  157,500 
tons  of  open  hearth  steel  rails,  at  $1  more  per  ton  than  the 
price  of  bessemer  rails.  This  at  once  put  that  company  into 
a  position  of  an  actual  competitor  of  the  Corporation,  and 
of  a  possible  competitor  that  could  not  be  ignored,  of  great 
potentiality.  The  Corporation  was  not  slow  to  discern  the 
situation.  James  Gayley,  First  Vice  President  of  the  Corpora¬ 
tion,  having  acquainted  himself  with  the  properties  of  the  Ten¬ 
nessee  Company,  had  already  recommended  to  Mr.  Frick,  who 
then  was  a  director  of  the  Corporation,  that  it  acquire  the 
properties  of  the  Tennessee  Company.  This  was  about  six 
months  before  the  purchase  was  made.  A  syndicate,  which 
purchased,  at  $110  per  share,  118,500  of  the  total  225,000  shares 
of  the  Tennessee  Company,  acquired  the  control  for  the  purpose 
of  development  and  operation.  Subsequently,  a  syndicate  com¬ 
posed  partly  of  the  original  members,  purchased  50,000  addi- 


32 


tional  shares  at  $120  or  $130  per  share,  thus  putting  168,500 
shares  under  syndicate  control.  After  these  purchases  the  com¬ 
pany  expended  $7,000,000  in  betterments  and  additions,  and  was 
preparing  to  spend  $3,000,000  more.  It  was  the  purpose  of  the 
syndicate  to  bring  the  whole  plant  up  to  modern  standards,  and  to 
increase  the  capacity  as  conditions  warranted.  The  company 
had  rails  booked  for  1908  delivery  of  about  350,000  tons. 

Grant  B.  Schley,  of  the  firm  of  Moore  &  Schley,  of  New  York 
City,  was  one  of  the  syndicate  holding  a  majority  of  the  stock. 
This  was  known  to  the  officers  of  the  Corporation.  Moore  & 
Schley,  in  October,  1907,  owed  large  sums  of  money  in  New 
York  and  elsewhere,  from  $35,000,000  to  $38,000,000,  upon  call 
and  time  loans  which  were  running  to  maturity.  Some  of  these 
loans  were  partly  secured  by  pledge  of  100,000  shares  of  Ten¬ 
nessee  stock,  the  amount  fluctuating. 

In  October,  1907,  a  great  panic  came,  and  New  York  was  the 
storm  center. 

Those  in  control  of  the  Corporation  obtained  intimate  knowl¬ 
edge  of  the  affairs  of  Moore  &  Schley,  and  of  their  holdings  of 
Tennessee  stock.  The  credit  of  Moore  &  Schley,  and  the  charac¬ 
ter  of  their  stock  holdings,  such  as  Tennessee  stock,  Republic 
Iron  and  Steel  stock  and  other  industrials,  was  discussed  on  the 
Street  and  among  bankers,  and  the  question  of  their  failure  was 
mooted.  The  Tennessee  stock  was  specially  subjected  to  criti¬ 
cism,  and,  in  Wall  Street  parlance,  was  “  hammered”  as  a  collat¬ 
eral.  H.  C.  Frick  and  E.  H.  Gary,  representing  the  Corporation, 
took  up  the  negotiation  with  Schley  for  the  purchase  of  the  syn¬ 
dicate  stock  of  the  Tennessee  Company,  offering  him  first  the 
equivalent  of  sixty  cents  on  the  dollar  and  afterwards  seventy- 
five  cents  on  the  dollar  in  cash  for  the  stock,  which  Schley  de¬ 
clined.  Oakleigh  Thorne,  who  was  President  of  the  Trust  Com¬ 
pany  of  America,  a  New  York  institution,  was  one  of  the  syndi¬ 
cate  that  purchased  the  majority  of  the  stock  of  the  Tennessee 
company,  having  subscribed  for  12,500  shares. 

In  a  New  York  paper  of  October  23rd,  appeared  a  statement 
headed  “Aid  Trust  Company  of  America”.  Among  other  things 
it  said  that  at  a  meeting  the  night  before,  of  the  chief  bankers  o 
the  city,  headed  by  J.  P.  Morgan  &  Co.,  it  was  formally  decided 
that  the  point  then  needing  buttressing  was  the  Trust  Company 
of  America,  and  that  this  determination  was  announced  after 


33 


Mr.  Perkins  (meaning  George  W.  Perkins  of  J.  P.  Morgan  & 
Co.)  had  been  in  conference  subsequent  to  said  gathering  of 
bankers.  A  part  of  the  article  sub-headed  “The  Official  State¬ 
ment,”  said:  “The  chief  sore  point  is  the  Trust  Company  of 
America.”  After  expressing  confidence  in  the  condition  of  the 
Company,  and  stating  that  it  would  be  aided,  and  that  cash  had 
been  guaranteed  therefore,  it  was  stated  that  these  steps  were 
taken  for  the  purpose  of  announcing  that  the  Company  would 
be  taken  care  of  if  an  examination  into  its  affairs  which  had 
been  authorized,  showed  conditions  to  be  as  sound  as  there  was 
every  reason  to  believe  them  to  be.  This  announcement  helped 
materially  to  cause  a  run  on  the  said  Trust  Company,  and 
aggravated  the  general  uneasy  condition,  and  made  the  posi¬ 
tion  of  Moore  &  Schley  more  desperate.  It  was  generally 
known  that  Thorne  and  Schley  were  members  of  the  Tennessee 
syndicate.  Regardless  of  the  intent  in  giving  out  the  state¬ 
ment — and  the  facts  are  not  sufficiently  known  to  make  any 
charge  in  this  regard — the  fact  is  that  it  contributed  directly 
and  strongly  toward  bringing  Moore  &  Schley  to  a  point  of  im¬ 
minent  failure,  although  they  were  amply  solvent.  Their  con¬ 
dition  had  become  desperate.  It  being  generally  regarded  by 
bankers  and  financiers  that  their  failure  might  precipitate  a 
general  crisis,  they,  J.  P.  Morgan  &  Co.  taking  the  lead,  exert¬ 
ed  themselves  by  advances  of  ready  money  to  meet  pressing 
demands  and  otherwise  to  prevent  their  suspension.  Much 
of  the  effort,  however,  revolved  about  the  proposition  for  the  Cor¬ 
poration  to  acquire  the  stock  of  the  Tennessee  Company.  Noth¬ 
ing  less  than  the  control  of  the  Tennessee  Company  was  consid¬ 
ered  by  the  Corporation,  and  negotiations  proceeded  rapidly  and 
steadily  to*  that  end,  it  being  represented  to  Schley  that  in  no 
other  way  could  relief  be  brought  to  him.  There  was  fear 
upon  the  part  of  the  Corporation  that  when  the  movement  be¬ 
came  publicly  known  the  Government  might  take  steps  to  pre¬ 
vent  its  consummation.  In  view  of  this,  E.  H.  Gary,  the 
Chairman  of  the  Executive  Committee  of  the  Corporation,  and 
H.  C.  Frick,  a  Director,  went  to  Washington,  reaching  there  Sun¬ 
day  morning,  November  4,  to  see  the  President,  having  previ¬ 
ously  made  an  appointment.  Without  fully  disclosing  all  the 
facts  in  regard  to  the  Tennessee  stock,  its  ownership,  the 
amount  of  money  estimated  as  necessary  to  relieve  Moore  & 


34 


Schley,  and  the  arrangements  that  had  already  been  made  to 
relieve  the  Trust  Company  of  America,  they  represented  to  the 
the  President  that  the  only  thing  that  would  prevent  a  vicious 
spread  of  the  panic  was  for  the  Corporation  to  acquire  the 
stock  of  the  Tennessee  Company.  The  President  recorded, 
in  a  letter  to  the  Attorney  General,  written  in  their  presence, 
their  representations.  He  states  that  said  Gary  and  Frick  told 
him  that  there  was  a  certain  business  firm  which  would  fail 
if  help  should  not  be  given,  and  that  among  its  assets  were  a 
majority  of  the  securities  of  the  Tennessee  Coal  Company.  The 
firm  referred  to  was  undoubtedly  Moore  &  Schley,  but  it  was  not 
true  that  among  the  assets  of  the  firm  were  a  majority  of  said  se¬ 
curities.  Nor  was  it  true  that  said  Schley  had  among  his  assets  a 
majority  or  anything  approximating  it.  The  President  further 
said  in  his  letter:  “Judge  Gary  and  Mr.  Frick  informed  me  that 
but  little  benefit  will  come  to  the  Steel  Corporation  from  the 
purchase.”  This  statement  to  the  President  was  a  misleading 
one.  The  property  was  very  valuable.  Next  to  the  Corporation 
the  Tennessee  Company,  as  will  be  shown,  had  the  largest  coal 
and  ore  properties  in  the  United  States  of  any  steel  concern.  A 
competitor  was  removed.  The  Corporation,  in  its  report  to  its 
stockholders  of  this  purchase,  said  that  the  terms  of  purchase 
were  satisfactory,  both  as  to  price  and  manner  of  payment ;  that 
the  purchase  of  the  property  promised  benefit  to  the  Corpora¬ 
tion,  and  that  the  Tennessee  property  was  very  valuable.  The 
President  was  not  made  fully  acquainted  with  the  state  of 
affairs  in  New  York,  relevant  to  the  transaction  as  they  ex¬ 
isted.  If  he  had  been  fully  advised  he  would  have  known  that 
a  desire  to  stop  the  panic  was  not  the  sole  moving  cause,  but  that 
there  was  also  the  desire  and  purpose  to  acquire  the  control  of  a 
company  that  had  recently  assumed  a  position  of  potential  com¬ 
petition  of  great  significance.  The  President,  taken  as  he  was 
partially  into  confidence,  and  moved  by  his  appreciation  of  the 
gravity  of  the  situation  and  the  necessity  for  applying  what  was 
represented  to  him  to  be  the  only  known  remedy,  stated  that  he 
did  not  feel  it  to  be  his  duty  to  prevent  the  transaction.  The 
matter  then  moved  rapidly  to  consummation.  The  Corporation 
and  its  powerful  banker  allies  did  not  advance  the  money  or  lend 
the  bonds  of  the  Corporation  upon  the  Tennessee  stock,  which 
would  have  relieved  Moore  &  Schley,  so  far  as  the  Tennessee  col- 


35 


lateral  was  concerned,  and  which  would  not  have  exceeded  six 
or  eight  millions  of  dollars.  They  took  the  position  that  nothing 
would  relieve  the  situation  but  the  Corporation  taking  over 
absolutely  the  majority  of  the  Tennessee  stock.  This  was  done, 
and  it  acquired  also,  under  the  same  agreement,  additional  stock, 
bringing  the  entire  amount  up  to  $30,374,825,  leaving  outstand¬ 
ing  only  $220,160.  The  Corporation  exchanged  for  the  stock 
its  own  bonds  on  a  basis  which  paid  par  in  cash,  for  stock  which 
Gary  a  few  days  before  said  was  not  worth  more  than  sixty  cents 
on  the  dollar. 

While  as  to  much  of  the  situation  the  facts  are  in  doubt,  it  is 
certain  that  the  Corporation  availed  itself  of  the  embarrassment 
of  Moore  &  Schley  at  a  most  critical  period,  and  the  hammering 
of  the  Tennessee  stock  and  the  threatening  of  a  general  financial 
calamity,  to  acquire  the  control  of  a  competitor,  taking  on  a  for¬ 
midable  aspect. 

By  this  purchase  the  Corporation  acquired  447,423  acres  of 
mineral  lands  in  Tennessee,  Georgia  and  Alabama,  containing 
approximately  400,000,000  tons  of  merchantable  ore  and 
1,200,000,000  tons  of  coal,  of  which  over  one-third  is  coking-coal. 

The  Tennessee  properties  embraced  eighteen  developed  and 
active  iron  ore  mines  and  twenty-three  coal  mines,  sixteen  blast 
furnaces,  the  ownership  of  several  land  companies  holding  ex¬ 
tensive  tracts  of  lands,  and  the  Birmingham  Southern  Railroad 
Company,  a  terminal  property  of  great  value  connecting  the 
various  mines  and  plants  in  the  Birmingham  district  with  all 
the  diverging  trunk  lines. 

The  capacity  of  the  Tennessee  Company’s  blast  furnaces  a  year, 
was  about  1,000,000  tons,  and  its  steel  ingot  capacity  was  about 
500,000  tons. 

The  possibilities  of  the  Tennessee  properties  and  the  develop¬ 
ment  of  its  raw  material  are  immense,  and  greatly  increase  the 
control  by  the  Corporation  over  the  total  available  ore  supply  of 
the  country. 

The  Corporation  thus  greatly  strenthened  its  control  of  the  iron 
ore  supply  of  the  country,  its  predominating  position  in  the  iron 
and  steel  trade  of  the  South,  eliminated  a  competitor,  and  unlaw¬ 
fully  acquired  a  power  which  is  a  menace  to  the  welfare  of  the 
country  and  should  be  destroyed. 


36 


VII. 

POSITION  ACHIEVED  BY  THE  CORPORATION 
THROUGH  THE  OWNERSHIP  OR  CON¬ 
TROL  OF  COAL,  COKE,  IRON  ORE 
AND  TRANSPORTATION. 

The  control  of  transportation  of  ore  by  means  of  railroads  and 
ships  acquired  by  the  Corporation  as  heretofore  shown  gives  it  a 
commanding  position  over  its  competitors,  none  of  whom  has 
any  such  transportation  of  any  consequence,  and  some  of  whom 
are  dependent  for  their  ore  upon  the  transportation  furnished  by 
the  Corporation.  The  profits  derived  by  the  Corporation  from 
its  transportation  properties,  chiefly  railroad  lines,  represent  a 
large  part  of  its  earnings,  and  these  are  largely  derived  from  the 
rates  and  tolls  imposed  by  the  Corporation  upon  other  steel 
manufacturers,  who  have  to  have  their  ore  transported  in  the 
Minnesota  ore  region  by  the  Duluth  and  Iron  Range  and  the 
Duluth  &  Missabe  railroads.  By  the  power  thus  acquired  a 
burden  is  imposed  upon  competitors  and  a  restraint  is  thereby 
exercised  upon  trade  and  commerce  between  the  States.  Since 
1904,  the  Duluth  &  Iron  Range  Railroad  Company  has  paid  divi¬ 
dends  upon  the  capital  which  have  averaged  more  than  100  per 
cent,  per  annum.  For  the  same  period  those  of  the  Duluth, 
Missabe  &  Northern  Railway  Company  have  been  from  02  per 
cent,  to  240  per  cent,  per  annum,  upon  the  capital  stock.  Peti¬ 
tioner  has  recently  received  information  of  the  purpose  of  the 
Corporation  to  reduce  the  rates  of  these  roads  on  ore  20  cents  per 
ton. 

Through  the  ownership  of  the  Elgin,  Joliet  and  Eastern  Ry., 
and  more  particularly  through  the  Bessemer  and  Lake  Erie, 
the  Corporation  has  a  further  important  advantage  over  most 
of  its  competitors  with  respect  to  transportation. 

Its  minor  railroad  properties,  particularly  the  Union  Railroad 
of  Pittsburg,  the  Chicago,  Lake  Shore  and  Eastern  Railway,  the 
Connellsville  &  Monongahela  Railway  and  that  of  the  Tennessee 
Company  are  important  factors  in  its  transportation  system  and 
give  it  an  advantage  over  its  competitors. 


37 


At  its  organization  it  controlled  the  bulk  of  the  best  coking 
coal  lands  in  the  Connellsville  region  and  so  acquired  a  great 
advantage  over  its  competitors.  In  1911,  it  made  an  important 
acquisition  of  coking  coal  properties  from  the  Pittsburg  Coal 
Company.  The  control  acquired  of  coking  and  other  coal 
through  the  Tennessee  Company  has  added  vastly  to  the  strength 
of  its  position  through  absorption  of  raw  material  thus  locking  it 
up  and  withdrawing  it  from  the  market  and  acquirement  by  its 
possible  competitors.  Its  holdings  of  commercially  available 
ores  greatly  exceed  those  of  all  other  iron  and  steel  interests 
combined.  The  ores  of  the  Lake  Superior  region  substantially 
form  the  basis  of  the  steel  production  of  the  country.  Of  this 
ore  in  the  State  of  Minnesota  the  Corporation  controls  not  less 
than  seventy-five  per  cent.  Its  control  of  the  ore  in  Michigan  is 
approximately  the  same.  In  acquiring  these  ores  the  Corpora¬ 
tion  has  pursued  the  policy  of  securing  the  ore  supply  of  the 
country  far  in  advance  of  any  of  its  needs  in  the  near  future, 
with  the  result  that  it  has  largely  forestalled  competition  by 
shutting  off  the  sources  upon  which  it  could  be  successfully 
based. 

The  ore-leasing  system,  where  there  is  no  limit  placed  on  the 
number  of  leases  that  can  be  combined  under  a  single  interest, 
greatly  facilitates  the  gathering  in  by  a  great  concern  like 
the  Corporation  of  a  vast  amount  of  ore  reserves,  far  in  advance 
of  any  commercial  need  for  them.  It  affords  an  opportunity  for  a 
strong  concern  to  corner  ore  reserves,  and  forestall  the  rise  of 
competition. 

E.  H.  Gary  stated  upon  oath,  before  the  Ways  and  Means  Com¬ 
mittee  of  the  House  in  December,  1908,  that  the  Corporation 
pretty  nearly  controlled  the  ultimate  ore  supply  of  the  country. 

The  control  of  such  a  large  proportion  of  available  ore  and  of 
so  much  of  the  transportation  of  ore  from  the  ore  fields  gave  the 
Corporation  the  power  to  largely  control  the  iron  and  steel 
market,  enforce  its  plans  and  wishes  upon  its  competitors,  restrain 
competition,  control  market  prices,  restrain  trade  and  commerce 
among  the  States  and  with  foreign  countries,  and  this  it  has 
since  1901,  continuously  done,  in  contravention  of  the  Anti-trust 
Act. 


38 


VIII. 

EXTENSIONS  AND  EARNINGS. 

Since  its  organization,  the  Corporation,  by  means  of  its  great 
earnings  made  possible  largely  through  the  power  and  control 
over  the  trade  in  iron  and  steel  derived  from  and  exercised  by 
the  combinations  described,  has  further  increased  its  power,  influ¬ 
ence  and  dominancy,  by  enlarging  its  old  plants  and  construct¬ 
ing  new  ones,  paid  for  largely  from  its  earnings. 

The  investment  of  earnings  has  been  from  $400,000,000  to 
$450,000,000. 

Its  net  earnings,  as  shown  by  its  Annual  Reports,  for  nine 
months  of  the  year  1901,  and  for  the  years  1902  to  1910,  inclu¬ 
sive,  aggregated  $980;045, 838.80.  This  was  an  average  of  about 
7  per  cent  per  annum  upon  the  total  capitalization  of  the  company. 
The  real  earnings  amounted  to  an  average  approximating  12  per 
cent  per  annum  upon  the  actual  average  investment  in  the  prop¬ 
erties,  but  in  estimating  such  actual  investment,  there  are  in¬ 
cluded  values  which  arose  from  additions  made  out  of  earnings, 
which  earnings  were  largely  and  wrongfully  enhanced  by  the 
unlawful  combination  and  the  power  and  control  exerted  by  it. 

IX. 

CHANGES  AS  TO  THE  PROPERTIES  OF  VARIOUS 
CONSTITUENT  COMPANIES. 

In  April,  1903,  the  Carnegie  Company  (of  New  Jersey),  the 
National  Steel  Company,  and  the  American  Steel  Hoop  Company 
were  combined  under  a  corporation  chartered  by  the  State  of 
New  Jersey,  named  the  National  Steel  Company,  which  name  was 
changed  to  Carnegie  Steel  Company,  with  a  capital  stock  of 
$63,000,000,  afterwards  increased  to  $65,250,000.  The  Carnegie 
Company  (of  New  Jersey)  and  the  National  Steel  Company 
were  both  large  producers  of  pig-iron  and  steel  billets  and  other 
heavy  steel  products,  and  but  for  their  common  control  by  the 
Corporation  would,  as  to  these  things,  have  been  competitors. 
The  said  Carnegie  Company  also  produced  merchant  bars  and 
other  products  similar  to  those  made  by  the  American  Steel 
Hoop  Company  and  said  companies  as  to  said  products  would 
have  been  competitors  but  for  their  common  control  by  the  Cor- 


39 


poration.  Thus  by  this  rearrangement  there  has  been  a  further 
consolidation  of  naturally  competitive  concerns  under  subordi¬ 
nate  companies  and  corporations. 

In  April,  1903,  the  coke  properties  of  the  various  subsidiary 
concerns  of  the  Corporation  were  transferred  to  the  H.  C.  Frick 
Coke  Co.,  the  capital  stock  of  which  was  increased  from  ten 
millions  of  dollars  to  twenty  millions  of  dollars. 

On  December  31,  1903,  a  further  consolidation  was  brought 
about  through  the  purchase  by  the  American  Sheet  Steel  Com¬ 
pany  of  all  the  property  of  the  American  Tin  Plate  Company, 
the  name  of  the  Sheet  Steel  Company  being  changed  to  the 
American  Sheet  and  Tin  Plate  Company.  Thus  were  brought 
together  under  one  consolidation  of  subordinate  companies  con¬ 
cerns  which  would  have  been  competitors  but  for  the  common 
control  exercised  over  them  by  the  Corporation. 

In  the  same  way  and  with  the  same  effect  the  plants  of  the 
Lorain  Steel  Company,  at  Lorain,  Ohio,  which  had  a  large  tube 
manufactory,  were  brought  under  the  control  of  the  National 
Tube  Company. 

In  1904,  all  the  various  ore  properties  of  the  Corporation 
were  placed  under  the  active  control  of  the  Oliver  Iron  Mining 
Company. 

About  the  same  period  the  various  properties  of  the  Union 
Steel  Company  were  leased  to  other  subsidiary  concerns  of  the 
Corporation.  Thus  the  blast  furnaces  and  the  steel  works  were 
leased  to  the  Carnegie  Steel  Company,  and  the  wire  plants  to  the 
American  Steel  and  Wire  Company. 


40 


After  these  changes  the  principal  constituent  concerns  of  the 
Corporation,  the  stocks  of  which  were  directly  held  by  it  on  July 
1,  1911,  were  as  follows: 


Company. 


Class  of 
stock. 


Total  out¬ 
standing  capi¬ 
talization. 


Amount 
owned  by 
United 
States  Steel 
Corporation. 


Carnegie  Steel  Company  (of  New 

Jersey) . 

Federal  Steel  Company .  Common . 

Preferred  ... 


$65,250,000.00 

46,484,300.00 

53,260,900.00 


$65,250,000.00 

46,484,300.00 

53,260,900.00 


American  Steel  and  Wire  Company 
of  New  Jersey . 

National  Tube  Company . 

American  Sheet  and  Tin  Plate  Corn- 


Common . 

Preferred  ... 
Common  ... 
Preferred  ... 


50,000,000.00 

40,000,000.00 

40,000,000.00 

40,000,000.00 


49,989,400.00 

39,999,000.00 

40,000,000.00 

40,000,000.00 


pany. 


Common . 

Preferred  ... 


American  Bridge  Company . 

Shelby  Steel  Tube  Company .  Common . 

Preferred  ... 


Lake  Superior  Consolidated  Iron 

Mines . 

Pittsburg  Steamship  Company . 

Union  Steel  Company . 

Clairton  Steel  Company . 

Tennessee  Coal,  Iron  and  Railroad 
Company . 


Common . 

Preferred  ... 
Guaranteed 


24,500,000.00 

24,500,000.00 

10,000,000.00 

8,151,500.00 

5,000,000.00 

29,887,448.97 

7,880,000.00 

20,000,000.00 

3,500,000.00 

32,529,997.50 

124,500.00 


24,499,600.00 

24,499,600.00 

10,000,000.00 

8,151,500.00 

5,000,000.00 

29,887,448.97 
1  221,700.00 
20,000,000.00 
3,500,000.00 

32,442,795.00 


preferred . 


178,600.00 


i  The  balance  of  the  capital  stock  of  Pittsburg  Steamship  Company  ($7,658,300)  is  owned  by 
Carnegie  Steel  Company. 


A  number  of  these  constituents  had  subsidiary  companies,  in 
addition  to  property  held  in  fee.  A  statement  as  to  these  con¬ 
stituent  companies  and  their  subsidiary  companies  is  as  follows : 


CARNEGIE  STEEL  COMPANY  (NEW  JERSEY). 

Capital  stock,  $65,250,000.  All  owned  by  the  Corporation. 

In  addition  to  the  amount  of  capital  stock  as  above,  the  Car¬ 
negie  Steel  Company  has  a  capital  surplus  account  of  $189,000,000 
arising  as  follows:  In  1903  a  consolidation  or  merger  was  made 
of  the  Carnegie  Company,  National  Steel  Company,  and  Ameri¬ 
can  Steel  Hoop  Company.  The  aggregate  amount  of  capital 
stocks  of  these  three  companies  before  the  merger  was  $252,000,000. 


41 


The  stock  of  the  merged  or  consolidated  company  was  fixed  at  25 
per  cent,  of  the  total  of  the  old  companies’  stocks,  or  $63,000,000 
(since  increased  to  $65,250,000),  thus  giving  to  the  consolidated 
company  a  capital  surplus  of  $189,000,000. 

The  Carnegie  Steel  Company  of  New  Jersey,  aside  from  owning 
in  fee  all  the  manufacturing  properties  formerly  owned  by  the 
National  Steel  Company  and  the  American  Steel  Hoop  Company, 
also  controls  the  following  companies  through  ownership  of  their 
capital  stocks,  the  total  capital  stock  of  said  companies  being  as 
stated  below : 


Subsidiaries,  i 

Amount  of 
capital 
stock. 

Per  cent, 
owned by 
parent 
company. 

3.  Carnegie  Steel  Co.  (Pa.) 

$50,000,000 

100 

3.  Carnegie  Natural  Gas 
Co . 

300,000 

100 

3.  Union  R.  R.  Co . 

2,000,000 

100 

3.  Slackwater  Connecting 
R.  R.  Co . 

10,000 

100 

3.  Etna&  Montrose  R.  R. 
Co . 

60.000 

100 

4.  Sharon  Connecting 
R.  R.  Co . 

10,000 

100 

3.  Pittsbu  rg  &  Conneaut 
Dock  c° . 

100,000 

100 

3.  Youghiogq  heny  North¬ 
ern  R.  R.  Co . 

400,000 

100 

3.  Mt.  Pleasant  Water  Co. 

150,000 

100 

3.  Trotter  Water  Co . 

850,000 

100 

3.  Union  Supply  Co . 

500,000 

100 

3.  Bessemer  &  Lake  Erie 
R.  R.  Co . 

500,000 

100 

2.  Pittsburg,  Bessemer  & 
Lake  Erie  R.  R.  Co.: 
Common . 

10,000,000 

55 

Preferred . 

2,000,000 

38 

3.  Carnegie  Land  Co . 

10,000 

100 

3.  Conneaut  Land  Co . 

10,000 

100 

3.  Conneaut  &  Eastern 
R.  R.  Co . 

1,000 

100 

2, 5.  Penn.  &  Lake  Erie 
Dock  Co . 

675,000 

52 

2.  Columbus  Stone  Co.... 

60,000 

100 

2.  Mahoning  Limestone 
Co . 

50,000 

51 

3.  Isabella  Limestone  Co. 

3,000 

67 

3.  Pittsburg  Limestone 
Co.  (Ltd.) . 

60,000 

75 

3.  Peoples  Supply  Co. 
(Ltd.) . 

10,008 

75 

4.  Bessemer  Electric 
Power  Co . 

5,000 

100 

3.  Mingo  Coal  Co . 

1,000 

100 

3.  National  Mining  Co.... 

500,000 

66% 

2.  Pewabic  Co . 

200,000 

50 

2,6.  H.  C.  Frick  Coke  Co.... 

20,000,000 

74+ 

1,3.  Pittsburgh  S.  S  Co...... 

7,880,000 

97+ 

3.  Oliver  Iron  Mining  Co. 

1,200,000 

100 

Subsidiaries.! 

Amountof 

capital 

stock. 

Percent, 
owned  by 
parent 
company. 

3. 

Subsidiary  companies 
of  foregoing. 

Of  Union  R.  R.  Co.: 
Monongahela 
Southern  R.  R.  Co. 

160,000 

100 

3. 

Of  H.  C.  Frick  Coke 
Co  : 

Standard  W ater  Co. 

10,000 

100 

4. 

Sewiekley  Water 
Co . 

50,000 

100 

2. 

Hostetter-Connells- 
ville  Coke  Co . 

1,500,000 

87 

2. 

Of  Oliver  Iron  Mining 
Co.: 

Lake  Superior  Iron 
Co . 

2,100  000 

75 

2. 

Regent  Iron  Co . 

450,000 

75 

2. 

Security  Land  & 
Exploration  Co.... 

100,000 

100 

4. 

1 

Braddocklron  Min¬ 
ing  Co . 

30,700 

100 

4. 

Homestead  Iron 
Mining  Co . 

30,000 

100 

4. 

Duquesne  Iron  Min¬ 
ing  Co . 

22,100 

100 

4. 

Allegheny  Iron  Min¬ 
ing  Co . 

22,900 

100 

4. 

Hope  Iron  Mining 
Co . 

36,200 

100 

4. 

Neville  Iron  Min¬ 
ing  Co . 

50,000 

100 

4. 

Monongahela  Iron 
Mining  Co... . 

5.700 

100 

4. 

Lorain  Iron  Min¬ 
ing  Co . 

50,000 

100 

4. 

Acawam  Iron  Min¬ 
ing  Co . 

17,400 

100 

4. 

Great  Western 
Mining  Co . 

6,000,000 

100 

4. 

Ambridge  Iron  Min¬ 
ing  Co . 

50,000 

100 

4. 

More  wood  Iron 
Mining  Co... . 

50,000 

100 

4. 

Pencoydlron  Min¬ 
ing  Co . 

48,300 

100 

4. 

Munhall  Iron  Min¬ 
ing  Co . 

50,000 

100 

4. 

Monessen  Iron  Min¬ 
ing  Co . 

50,000 

100 

4. 

Somerset  Iron  Min¬ 
ing  Co . 

50.000 

ICO 

i  The  numbers  refer  to  notes  at  p.  46. 


42 


FEDERAL  STEEL  COMPANY  (NEW  JERSEY). 

Capital  stock:  Common,  $46,484,300;  preferred,  $53,260,900. 
Entire  amount  is  owned  by  the  Corporation. 

The  Federal  Steel  Company  owns  no  property  in  fee.  It  con¬ 
trols  the  following  companies  through  ownership  of  their  capital 
stocks.  The  total  capital  stocks  of  said  companies  are  as  stated 
below : 


Subsidiaries.! 

Amount  of 
capital 
stock. 

Per  cent 
owned  by 
parent 
company. 

Subsidiaries,! 

Amount  of 
capital 
stock. 

Per  cent 
owned  by 
parent 
company. 

2.  Minnesota  Iron  Co . 

$16,500,000 

100 

Subsidiary  companies  of 

2.  Illinois  Steel  Co . 

18,650,600 

100 

foregoing— Continued. 

2,7.  Elgin,Joliet&  Eastern 

Ry.  Co . 

10,000,000 

60 

Of  Minnesota  Iron  Co. — 

2.  The NationalTubeCo. 

Continued. 

(of  Ohio): 

3.  Elba  Iron  Co . 

$100,000 

100 

6  000  000 

100 

S.  Ea.yn.1  Jrnn  Cn . 

45,450 

100 

Preferred . 

3,000,000 

100 

a.  Genoa  Trrm  Do  . 

9  000 

100 

3.  The  Lorain  Steel  Co... 

3,000,000 

100 

3.  Hugo  Iron  Co . 

50  J  )()0 

100 

3.  The  Lake  Terminal 

3.  Manila  Iron  Co . 

32,000 

100 

R  R.  Co . 

2,000,000 

100 

a.  Norman  Iron  Co . 

50,000 

100 

3.  Johnstown  &  Stony 

3.  Northern  Develop¬ 

Creek  R.  R.  Co . 

91,500 

100 

ment  Co . 

100,000 

100 

3.  Ingleside  Coal  Co. 

3.  D  u  1  u  t  h  &  Iron 

(Ltd.) . 

14,000 

100 

Range  R.  R.  Co  ... 

3,000,000 

100 

4.  Indiana  Steel  Co . 

20,000,000 

100 

Of  Illinois  Steel  Co.: 

4.  Gary  Land  Co . 

10,000 

100 

4.  Universal  Portland 

4.  Connellsville  &  Mo- 

Cement  Co . 

1,000,000 

100 

nongahela  Ry.  Co . 

700,000 

100 

4.  United  States  Coal 

2.  H.  C.  Frick  Coke  Co. 

&  Coke  Co . 

2,000,000 

100 

(for  capitalization 

2.  H.  C.  Frick  Coke 

see  Carnagie  Steel 

Co.  (for  capital¬ 

Co.) . 

3+ 

ization  see  Car¬ 

4.  Bunsen  Coal  Co . 

10,000 

100 

negie  Steel  Co.).. 

10+ 

4.  U.  S.  Steel  Products 

4.  United  Supply  Co... 

100,000 

100 

Co . 

1,000,000 

100 

a.  Cnndy  Tron  Co . 

50,000 

100 

4.  Minnesota  Steel  Co . 

1,000,000 

100 

4.  Illinois  Steel  Ware¬ 

4.  Interstate  Transfer 

house  Co . 

100,000 

100 

Ry.  Co . 

50,000 

100 

3.  Chicago,  Lake 

4.  Spirit  Lake  Transfer 

Shore  &  Eastern 

R,y.  Co . 

65,000 

100 

Ry.  Co.. . 

9,000,000 

100 

4  Piloto  Mining  Co . 

20,000 

85 

3.  Joliet  &  Blue  Is¬ 

land  Ry.  Co . 

100,000 

100 

Subsidiary  companies 

3.  Chicago*  So.  East¬ 

of  foregoing. 

ern  Ry.  Co . 

100,000 

100 

3.  Chicago*  Kenosha 

Of  Minnesota  Iron  Co.: 

Ry.  Co . 

100,000 

100 

2.  Chandler  Iron  Co... 

80,000 

51 

3.  Milwaukee,  Bay 

2.  Chapin  Mining  Co.. 

1,000,000 

100 

View  &  Chicago 

2.  Winthrop  Iron  Co.. 

600,000 

100 

R.  R.  Co . 

100,000 

100 

3.  Alpha  Ore  Co . 

500 

100 

Of  Gary  Land  Co.: 

3.  Auburn  Iron  Co . 

400,000 

100 

4.  Gary  Heat,  Light 

3.  Beta  Ore  Co . 

500 

100 

*  Water  Co . 

100,000 

100 

3.  Bishop  Iron  Co . 

57,000 

100 

Of  U.  S.  Steel  Products 

3.  Canton  Iron  Co . 

50,000 

100 

Co.: 

3.  Chippewa  Iron  Co.. 

27,000 

100 

4.  Isthmian  S.  S.  Co.... 

£25,003 

100 

3.  Delaware  Iron  Co.. 

8,000 

100 

i  The  numbers  refer  to  notes  at  p.  46. 


43 


AMERICAN  STEEL  AND  WIRE  COMPANY  OF  NEW  JERSEY. 

Capital  stock:  Common,  $50,000,000;  preferred,  $40,000,000. 
All  but  106  shares  common  and  10  shares  preferred  is  owned  by 
the  Corporation. 

A  very  large  part  of  the  property  of  the  American  Steel  and 
Wire  Company  is  owned  in  fee.  The  company  also  controls  the 
following  subsidiaries: 


Subsidiaries,  i 

Amount  of 
capital 
stock. 

Per  cent 
owned  by 
parent 
company. 

4.  American  Steel  &  Wire 
Co.  (of  Alabama) . 

$100,000 

100 

3.  American  Steel  &  Wire 
Co.  (of  Colorado) . 

25,000 

100 

2.  Trenton  Iron  Co . 

600,000 

100 

3.  Canadian  Steel  &  Wire 
Co . 

30,000 

100 

2.  Griswold  Wire  Co . 

75.000 

100 

2.  Troy  Steel  Products  Co. 

900,000 

100 

3.  American  Mining  Co... 

1,000,000 

100 

3.  American  Land  Co . 

200,000 

100 

2.  Edgar  Zinc  Co . 

1,000,000 

80 

3.  Pittsburgh  &  Ohio  Val¬ 
ley  Ry.  Co . 

60,000 

100 

3.  Northern  Liberties  Ry. 
Co . 

5,000 

100 

Subsidiaries.! 


Amount  of 
capital 
stock. 


Per  cent 
owned  by 
parent 
company. 


3.  Newburg  &  South 

Shore  Ry.  Co .  $1,500,000 

3.  Waukegan  &  Missis¬ 
sippi  Valley  Ry;  Co...  22,000 

2.  H.  C.  Frick  Coke  Co 
(for  capitalization 
seeCarnegie  Steel  Co)  . 

4.  United  Coal  Co.  (for 
capitalization  see  A. 

S  &  T.  P.  Co.) . 

2.  Pennsylvania  &  Lake 
Erie  Dock  Co,  (for 
capitalization  see 
Carnegie  Steel  Co,) . 


100 

100 

11 

25 

18 


i  The  numbers  refer  to  notes  at  p.  46. 


NATIONAL  TUBE  COMPANY  (NEW  JERSEY). 

Capital  stock:  Common,  $40,000,000;  preferred,  $40,000,000. 
Entire  amount  is  owned  by  the  Corporation. 

The  greater  part  of  the  property  of  the  National  Tube  Com¬ 
pany  is  owned  in  fee.  The  company  also  owns  the  following 
stocks  of  subsidiary  companies. 


Subsidiaries.! 

Amount  of 
capi.al 
stock. 

Per  cent 
owned  by 
parent 
company. 

Subsidiaries.! 

Amount  of 
capital 
stock. 

Per  cent 
owned  by 
parent 
company. 

2.  National  Tube  Works 

Co . 

3.  Benwood  &  Wheeling 

Connecting  Ry.  Co . 

3.  McKeesport  Connect¬ 
ing  R.  R.  Co . 

2.  H.  C.  Frick  Coke  Co. 
(for  capitalization  see 
Carnegie  Steel  Co.)  ... 

$100,000 

50,000 

1.000,000 

100 

100 

100 

1 

2.  Pennsylvania  &  Lake 
Erie  Dock  Co.  (for 
capitalization  see 
Carnegie  Steel  Co.)  ... 

7+ 

i  The  numbers  refer  to  notes  at  p.  46. 


44 


AMERICAN  SHEET  AND  TIN  PLATE  COMPANY  (NEW  JERSEY). 

Capital  stock:  Common,  $24,500,000;  preferred,  $24,500,000. 
All  but  4  shares  of  each  class  of  stock  is  owned  by  the  Corpora¬ 
tion. 

In  addition  to  the  amount  of  capital  stock  as  above,  the  Ameri¬ 
can  Sheet  and  Tin  Plate  Company  has  a  capital  surplus  account 
of  $46,325,000  arising  from  the  merger  of  the  American  Tin  Plate 
Company  and  the  American  Sheet  Steel  Company.  In  that 
merger  the  stock  of  the  consolidated  company  remained  the  same 
as  the  stock  of  the  American  Sheet  Steel  Company  previously 
was,  thus  resulting  in  the  company  having  a  capital  surplus 
equal  to  the  stock  of  the  American  Tin  Plate  Company  in  lieu 
of  which  no  new  stock  was  issued. 

Nearly  all  of  the  property  of  the  company  is  owned  in  fee. 
The  subsidiary  concerns  are  as  follows: 


Subsidiaries.! 

Amount  of 
capital 
stock. 

Per  cent 
owned  by 
parent 

Subsidiaries.! 

Amount  of 
capital 
stock. 

Per  cent 
owned  by 
parent 

company. 

company. 

2. 

W.  Dewees  Wood  Co... 

$1,500,000 

100 

3.  Apollo  Gas  Co . 

$100,000 

100 

Versailes  Fuel  Gas 

4,8.  United  Coal  Co . 

60,000 

75 

Co . 

100,000 

100 

3,9.  National  Mining 
Co . 

McKeesport  Termi¬ 
nal  R.  R.  Co . 

33 3^ 

12,000 

100 

2,10.  Sharon  Tin  Plate 
Co . 

3. 

Elwood,  Anderson  & 
Lapelle  R.  R.  Co . 

40  X 

50,000 

100 

i  The  numbers  refer  to  notes  at  p.  46. 


AMERICAN  BRIDGE  COMPANY  (NEW  JERSEY). 

Capital  stock,  $10,000,000.  All  owned  by  the  Corporation. 

In  addition  to  the  amount  of  capital  stock  as  above,  the  Amer¬ 
ican  Bridge  Company  has  a  capital  surplus  account  of  $52,324,600 
arising  from  reducing  the  par  value  of  its  capital  stock  from 
$62,324,600  to  the  nominal  amount  of  $10,000,000. 

The  greater  part  of  the  property  of  the  company  is  owned  in 
fee.  Its  subsidiary  companies  are  as  follows : 


Subsidiaries.! 

Amount  of 
capital 
stock. 

Per  cent 
owned  by 
parent 
company. 

Subsidiaries.! 

Amount  of 
capital 
stock. 

Per  cent 
owned  by 
parent 
company 

4.  American  Bridge  Co 

(of  New  York) . 

4.  Empire  Bridge  Co . 

4.  American  Improve¬ 
ment  Co . 

$100,000 

3,000,000 

2,600 

100 

100 

100 

3.  Pencoyd  &  Philadel¬ 
phia  R.  R.  Co . 

$5,000 

100 

i  The  numbers  refer  to  notes  at  p.  46. 


45 


LAKE  SUPERIOR  CONSOLIDATED  IRON  MINES  (NEW  JERSEY). 

Capital  stock,  $29,887,448.97.  All  owned  by  the  Corporation. 
The  subsidiary  companies  of  the  Lake  Superior  Consolidated 
Iron  Mines,  and  their  capital  stocks,  are  as  follows : 


Subsidiaries.! 

Amount  of 
capital 
stock. 

Per  cent 
owned  by 
parent 
company. 

Subsidiaries.! 

Amount  of 
capital 
stock. 

Per  cent 
owned  by 
parent 
company. 

2.  Duluth,  Missabe  & 

4.  Cambridge  Iron  Min¬ 

Northern  Ry.  Co.. 

$4,112,500.00 

100 

ing  Co . 

$50,000.00 

100 

4, 11.  Proctor  Water  & 

4.  Clarion  Iron  Mining 

Light  Co . 

250,000.00 

100 

Co . 

50,000.00 

100 

3.  Adams  Mining  Co... 

220,000.00 

100 

4.  Crawford  Iron  Min¬ 

2.  Spruce  Mining  Co... 

66,000.00 

100 

ing  Co . 

50,000.00 

100 

2.  Mountain  Iron  Co... 

1,603,600.00 

100 

4.  Cumberland  Iron 

2.  Great  Northern 

Mining  Co . 

50,000.00 

100 

Mining  Co . 

3,500.000.00 

99+ 

3.  Essex  Iron  Co . 

1,293,267-48 

100 

2.  Shaw  Iron  Co . 

2,970,900.00 

99+ 

3.  Roucheleau-Rey  Min¬ 

2.  Rathbun  Iron  Min¬ 

ing  Co . 

95,000.00 

100 

ing  Co . 

100,000.00 

100 

3.  Tubal  Iron  Mining 

4.  Greenville  Iron 

Co . 

50,000.00 

100 

Mining  Co . 

50,000.00 

100 

3.  Owasco  Iron  Co . 

50,000.00 

100 

2.  Missabe  &  North¬ 

3.  Oneida  Iron  Co . 

50,000.00 

100 

ern  Town  Site  Co. 

•  6,900.00 

100 

3.  Seneca  Iron  co . 

50,000.00 

100 

i  The  numbers  refer  to  notes  at  p.  46. 


UNION  STEEL  COMPANY  (PENNSYLVANIA). 

Capital  stock,  $20,000,000.  All  owned  by  the  Corporation. 
The  Union  Steel  Company  owns  a  considerable  amount  of 
property  in  fee. 

The  subsidiary  companies  (which  hold  a  large  portion  of  the 
property)  and  their  capital  stocks  are  as  follows : 


Subsidiaries,  i 

Amount  of 
capital 
stock. 

Per  cent 
owned  by 
parent* 
company. 

Subsidiaries.! 

Amount  of 
capital 
stock. 

Percent 
owned  by 
parent 
company. 

3.  Sharon  Coke  Co . 

$2,510,000 

100 

3.  Girard  Land  r!r> . 

$300  000 

100 

3.12.  Republic-Connells- 

3.  Sharon  Land  Co . 

5,000 

100 

ville  Coke  Co . 

2,500,000 

100 

2.  Sharon  Tin  Plate  Co.. 

800,000 

59% 

3.  Sharon  Ore  Co . 

5,000,000 

100 

3.  Matthews  Woven 

3.  Donora  Mining  Co.. 

6,000,000 

100 

Wire  Fence  Co . 

49,000 

100 

3.  Mercer  Valley  R.R. 

3.  Sharon  Coal  &  Lime- 

Co . 

275,000 

100 

stoiio  Co 

300,000 

66% 

3.  Donora  Southern 

R.  R.  Co . 

40,000 

100 

i  The  numbers  refer  to  notes  at  p.  46. 


46 


CLAIRTON  STEEL  COMPANY  (PENNSYLVANIA). 

Capital  stock,  $3,500,000.  All  owned  by  the  Corporation. 

The  greater  part  of  the  property  of  Clairton  Steel  Company  is 
owned  in  fee.  Its  subsidiary  companies  and  their  capital  stocks 
are  as  follows : 


Subsidiaries.! 

Amount  of 
capital 
stock. 

Percent, 
owned  by 
parent 
company. 

Subsidiaries.! 

Amount  of 
capital 
stock. 

Per  cent, 
owned  by 
parent 
company. 

.3  St.  Clair  Terminal  R.  R. 
Co . 

$1,000,000 

1,000 

100 

2.  Champion  Iron  Co . 

3.  St.  Clair  Limestone  Co... 

$498,750 

26,000 

100 

51 

3.  CJlairtnn  Land  Co . 

100 

i  The  numbers  refer  to  notes  at  p. - . 


TENNESSEE  COAL,  IRON  AND  RAILROAD  COMPANY  (TENNESSEE). 

Capital  stock:  Common,  $32,529,997.50;  preferred,  $124,500; 
guaranteed  preferred  (Alabama  Steel  and  Ship  Building  Com¬ 
pany),  $178,600.  All  of  the  common  stock,  except  $87,202.50,  is 
owned  by  the  Corporation,  but  none  of  the  preferred  or  guaranteed 
preferred  stock  is  owned  by  the  Corporation. 

The  great  bulk  of  the  property  of  the  Tennessee  Coal,  Iron  and 
Railroad  Company  is  owned  in  fee;  the  company  has,  however, 
the  following  subsidiaries : 


Subsidiaries.! 

Amount  of 
capital 
stock. 

Per 

cent. 

owned 

by 

parent 

com¬ 

pany. 

Subsidiaries.! 

Amount  of 
capital 
stock. 

Per 

cent. 

owned 

by 

parent 

com¬ 

pany. 

2.  Birmingham  Southern 
R.  R.  Co . . 

$1,200,000.00 

10,000.00 

100 

3.  Ensley  Land  Co . 

3.  Potter  Ore.  Co . 

$450,163.75 

800,000.00 

57+ 

50 

3.  Tennessee  Land  Co . 

100 

i  The  numbers  refer  to  notes  at  p. 


NOTES. 

1  The  United  States  Steel  Corporation  also  owns  $221,700  (par  value)  of  the  stock  of  the 
Pittsburg  Steamship  Company,  the  balance  of  the  stock  being  owned  by  the  Carnegie  Steel 
Company. 

2  Companies  which  were  independent  concerns  prior  to  the  time,  that  control  or  owner¬ 
ship  thereof  passed  to  the  parent  company  now  controlling  or  owning  same. 

3  Companies  which  were  promoted  and  organized  in  the  interest  of  their  respective  parent 
companies,  in  the  extension  of  their  business,  prior  to  the  date  the  United  States  Steel 
Corporation  acquired  control  of  the  said  parent  companies. 

4  Companies  which  have  been  promoted  and  organized  in  the  interest  of  their  respective 
parent  companies,  in  the  extension  of  their  business,  since  the  time  the  United  States 
Steel  Corporation  acquired  control  of  said  parent  companies. 

5  American  Steel  and  Wire  Company  and  National  Tube  Company  also  own  stock  of  this 
company,  giving  an  ownership  by  United  States  Steel  interests  of  77.9  per  cent  of  total. 

6  The  remaining  26  per  cent  of  Frick  Coke  Company  stock  is  owned  by  other  companies 
controlled  by  the  United  States  Steel  Corporation,  viz :  National  Tube  Company,  1  per  cent; 
American  Steel  and  Wire  Company,  11  +  per  cent;  Illinois  Steel  Company,  10+  percent; 
Federal  Steel  Company,  3  +per  cent.  Thus  the  entire  stock  of  Frick  Coke  Company  is  owned 
by  United  States  Steel  interests.  In  addition  to  its  outstanding  stock  of  $20,000,000  the  Frick 
company  has  a  capital  surplus  of  $4,871,231.30  arising  from  merger  of  companies. 

7  The  remaining  40  per  cent  of  this  company’s  stock  is  owned  by  the  Chicago,  Lake  Shore 
and  Eastern  Railway  Company,  a  subsidiary  of  the  Illinois  Steel  Company. 

8  Balance  of  stock  owned  by  American  Steel  and  Wire  Company. 

9  See  Carnegie  Steel  Company  for  particulars  of  stock,  etc. 

i  o  See  Union  Steel  Company  for  particulars  of  stock,  etc. 

1 1  Authorized  amount. 

1 2  This  company  has  also  a  capital  surplus  of  $2,000,000  arising  from  merger  of  companies. 


47 


X. 

CONSOLIDATIONS. 

The  said  several  constituent  companies  and  the  owners  of  the 
said  several  properties  brought  together  by  the  said  several  com¬ 
binations  and  consolidations  under  the  said  several  defendant 
constituent  companies  as  aforesaid,  which,  as  shown,  were  subse¬ 
quently  combined  under  the  Corporation,  were,  before  and  at  the 
time  of  the  said  several  combinations  and  consolidations  entered 
into  by  said  constituent  companies,  engaged  in  manufacturing 
products  or  mining,  according  to  the  character  of  their  several 
businesses,  for  trade  and  commerce  among  the  States  and  Terri¬ 
tories  of  the  United  States,  the  District  of  Columbia  and  with 
foreign  nations,  and  in  having  the  same  transported  outside  of 
the  States  severally  where  they  were  manufactured,  or  where 
said  mining  was  carried  on,  and  into  the  several  States  and  Ter¬ 
ritories  of  the  United  States,  the  District  of  Columbia  and  foreign 
nations,  and  in  selling  the  same  outside  of  the  States  where  they 
were  produced  and  in  the  several  States  and  Territories  of  the 
United  States,  the  District  of  Columbia  and  foreign  nations ;  and 
since  said  combination  and  consolidation  under  the  Corporation, 
the  aforesaid  constituent  companies  of  the  Corporation  and  the 
corporation  controlling  them  have  from  time  to  time  and  down 
to  the  present  time,  engaged  in  manufacturing  products  or  min¬ 
ing,  according  to  the  businesses  of  the  said  several  constituent 
companies,  for  trade  and  commerce  among  the  States  and  Terri¬ 
tories  of  the  United  States,  the  District  of  Columbia  and  with 
foreign  nations,  and  in  having  the  same  transported  outside  of 
the  States  severally  where  such  products  were  manufactured,  or 
where  the  said  mining  was  carried  on,  and  into  the  several  States 
and  Territories  of  the  United  States,  the  District  of  Columbia  and 
foreign  nations,  and  in  selling  the  same  outside  of  the  States 
where  they  were  produced  and  in  the  several  States  and  Terri¬ 
tories  of  the  United  States,  the  District  of  Columbia  and  foreign 
nations. 

The  Corporation  and  the  several  companies  combined  under 
the  first  consolidation  in  1901,  their  officers  and  agents,  and 
the  individual  defendants,  in  what  they  did,  as  aforesaid, 
entered  into  an  agreement  or  combination  in  restraint  of  trade 
and  commerce  among  the  several  States  and  with  foreign  na- 


48 


tions  within  the  meaning  of  Section  1,  and  a  combination  to 
monopolize  a  part  of  the  trade  or  commerce  among  the  several 
States  and  with  foreign  nations,  within  the  meaning  of  Section  2, 
of  the  Anti-trust  Act,  and  the  same  is  true  in  respect  of  the 
action  of  the  Corporation,  of  said  individual  defendants,  and  of 
the  several  companies  herein  named,  in  the  acquisition  of  the 
control  severally  of  the  American  Bridge  Company,  Lake  Supe¬ 
rior  Consolidated  Iron  Mines,  Shelby  Steel  Tube  Company,  Union 
Steel  Company,  the  Troy  Steel  Products  Company,  the  Clairton 
Steel  Company,  the  Tennessee  Coal,  Iron  and  Railroad  Company 
and  the  iron  ores  of  the  Great  Northern  interests. 

All  the  business  of  the  Corporation  and  its  controlled  com¬ 
panies  is  conducted  without  competition  among  them,  and  as  a 
part  of  a  general  plan  and  combination  by  which  they  have  par¬ 
tially  destroyed  competition  in  trade  and  commerce  among  the 
States  and  with  foreign  nations,  and  have,  by  their  strength, 
acquired  a  great  and  unwholesome  influence  over  competitors, 
whereby  they  are  brought  into  harmonious  action  with  the  Cor¬ 
poration  in  restricting  competition  and  in  restraining  such 
trade  and  commerce. 


XI. 

POOLS  AND  AGREEMENTS. 

The  Corporation,  through  its  holdings  of  stocks  in  the  operating 
companies  controlled  their  acts  and  brought  about  the  combined 
control  of  the  market  as  completely  as  if  it  had  been  the  direct 
legal  owner  of  the  properties  and  businesses  of  the  controlled 
corporations. 

Prior  to  1900,  following  trade  wars,  makers  of  iron  and 
steel  products  would  come  together  and  form  an  arrange¬ 
ment  with  each  other  whereby  they  would  limit  their  percentages 
of  output  and  fix  upon  and  maintain  prices.  This  was  done  by 
the  makers  of  structural  materials,  of  plates,  of  billets,  of  rails,  of 
beams,  of  nails,  etc. 

Under  some  of  these  arrangements,  if  a  maker  exceeded  the 
tonnage  of  his  allotment  he  paid  a  penalty  into  the  pool.  The 
purpose  and  effect  of  this  was  to  maintain  prices.  When  these  pools 
were  not  in  operation  there  were  competition  and  fluctuations  in 
prices. 


49 


PLATE  ASSOCIATION. 

In  the  year  1900,  prices  of  steel  plate  fell.  There  was  sharp 
competition.  The  representatives  of  eleven  steel  plate  manufactur¬ 
ers,  whose  combined  output  exceeded  75  per  cent,  of  the  steel  plate 
output  of  the  United  States,  met  to  established  maintain  prices 
On  about  November  1,  1900,  they  entered  into  a  conspiracy,  com¬ 
bination  or  agreement  for  that  purpose,  and  had  prepared  a  con¬ 
tract  to  carry  it  out.  It  provided  that  all  sales  between  parties 
to  the  agreement  should  be  at  pool  prices  fixed  by  them,  that 
sales  to  the  public  should  be  apportioned  between  them  by  per- 
centages,  that  no  party  could  withdraw  except  under  three 
months’  notice,  -that  other  firms  and  corporations  might  be  ad¬ 
mitted,  and  that  minimum  fixed  rates  should  be  maintained  and 
should  not  be  altered  except  by  unanimous  consent. 

To  insure  performance,  a  guarantee  fund  was  paid  in  subject 
to  forfeiture  or  penalty  by  any  party  violating  the  agreement,  in 
the  discretion  of  the  other  members.  A  written  instrument  was 
prepared  and  signed  by  some  of  the  parties.  A  copy  of  same  is 
made  part  hereof  as  Exhibit  A. 

It  appearing  that  this  might  be  damaging  evidence,  an  effort 
was  made  to  suppress  it,  and  so  far  as  defendants  knew  all  copies 
were  gathered  in  and  burned.  Petitioner  has  not  been  able  to 
obtain  a  copy  of  Agreement  B,  referred  to  in  Exhibit  A 
While  the  agreement  shown  in  Exhibit  A  may  not  have  been 
executed  by  all  of  the  parties  named  in  it,  all  of  them  operated 
under  and  carried  into  effect  one  substantially  like  it  down  to 
about  the  early  part  of  1905.  They  communicated  with  each 
other,  met  together,  usually  once  a  month,  and  reached  under- 
s  andings  as  to  their  future  action,  by  which  they  maintained 
prices  and  apportionment  of  sales. 

Three  of  the  constituent  companies  of  the  Corporation  were 
parties  to  the  said  agreement,  viz.:  Carnegie  Steel  Company, 

1  Iinois  Steel  Company,  and  the  American  Steel  &  Wire  Com- 

Pfa"y'  nE'  H'  Gary’  Wh°  t0°k  a"  active  Part  in  the  organization 
ot  the  Corporation,  and  has  always  held  office  in  it,  being  Chair¬ 
man  of  the  Executive  Committee  from  1901  to  1903,  and  there- 
a  ei  hairman  of  the  Board  of  Directors,  and  since  1906  Chair- 
man  of  the  Finance  Committee,  was,  when  said  agreement  was 
made.  President  of  the  Federal  Steel  Company.  Pie  had  full 
Knowledge  of  the  formation  of  this  combination,  and  of  the  par- 


50 


ticipation  in  it  by  the  said  constituent  companies,  after  their 
absorption  by  the  Corporation.  During  the  period  from  1901  to 
1905,  the  said  makers  restrained  competition  and  trade  and  main¬ 
tained  prices  at  a  higher  level  than  had  prevailed  when  compe¬ 
tition  existed. 

While  since  1904,  the  said  parties  may  not  have  acted  under 
said  agreement  or  any  written  agreement,  nevertheless  they  and 
other  makers  of  steel  plates  have  continued  to  meet  together  from 
time  to  time  and  to  enter  into  understandings  as  to  the  maintenance 
by  them  of  prices  and  the  apportionment  of  sales,  by  which  they 
have  effectually  restrained  competition,  maintained  prices,  and 
restrained  trade  and  commerce  between  the  States  and  with 
foreign  countries,  in  contravention  of  the  Anti-trust  Act. 

This  result  has  come  mainly  from  the  cohesive  power  and  over¬ 
mastering  influence  exerted  by  the  Corporation. 

STRUCTURAL  STEEL  ASSOCIATION. 

On  January  1,  1897,  sharp  competition  then  existing  between 
them,  certain  makers  of  structural  steel  in  the  United  States  en¬ 
tered  into  an  agreement  for  the  purpose  of  limiting  sales  and  fix¬ 
ing  and  maintaining  prices.  A  copy  of  said  contract  is  made 
part  hereof,  as  Exhibit  B.  It  sets  out  the  names  of  the  contract¬ 
ing  parties.  Among  them  is  the  Carnegie  Steel  Co.  (Ltd.),  which 
was  absorbed  by  the  Carnegie  Company,  of  New  Jersey,  which,  as 
shown,  entered  in  1901  into  the  combination  designated  herein  as 
the  Corporation.  This  agreement  was  operated  under  until  about 
the  year  1905,  in  the  same  manner  and  with  the  same  purpose 
and  effect  as  has  been  previously  alleged  in  respect  of  the  Plate 
Association,  both  associations  having  had  the  same  Commissioner 
and  having  been  conducted  in  exactly  the  same  way,  and  with 
the  same  results  in  respect  to  the  maintenance  of  prices,  suppres¬ 
sion  of  competition  and  restraint  of  trade. 

While  since  1904,  the  same  parties  may  not  have  acted  under 
said  agreement  or  any  written  agreement,  nevertheless  they,  and 
other  makers  of  structural  steel  have  continued  to  meet  together 
from  time  to  time,  and  to  enter  into  understandings  as  to  the 
maintenance  by  them  of  prices,  and  the  apportionment  of  sales, 
by  which  they  have  effectually  restrained  competition,  maintain¬ 
ed  prices,  and  restrained  trade  and  commerce  between  the  States 
and  with  foreign  countries,  in  contravention  of  the  Anti-trust 
Act. 


51 


This  result  has  come  mainly  from  the  cohesive  power  and  over¬ 
mastering  influence  exerted  by  the  Corporation. 

THE  STEEL  RAIL  COMBINATION. 

In  November,  1897,  there  were  approximately  twenty -five  mills 
in  the  United  States  making  standard  rails.  From  1867,  to  the 
year  1900  inclusive,  a  period  of  thirty-four  years,  the  prices  of 
rails  varied  every  year.  In  no  two  years  in  that  period  did  the 
prices  continue  the  same  throughout  said  years.  In  1897  and 

1898  there  was  severe  competition  and  the  prices  fell  from  $28.00 
per  long  ton,  in  1896,  to  which  it  had  been  put  by  a  pool  or  com¬ 
bination,  to  $18.00  in  1897,  and  to  $17.00  in  1898.  Through 
combination  by  said  makers  the  price  went  as  high  as  $35.00  in 

1899  and  1900.  In  the  early  part  of  1901  it  went  as  low  as  $26.00 
per  ton.  In  April,  1901,  the  Corporation  began  operations.  Of 
the  said  mills  making  standard  steel  rails,  eleven  came  under  the 
combination  and  control  of  the  Corporation,  and  have  so  con¬ 
tinued.  In  May,  1901,  under  the  dominating  influence  and 
great  power  exercised  over  the  industry  by  the  Corporation,  the 
price  went  to  $28.00  per  ton,  and  has  been  there  maintained  with¬ 
out  the  slightest  variation,  and  regardless  of  the  cost  of  produc¬ 
tion  or  demand  for  same,  down  to  the  present  time,  thus  being 
held  at  a  fixed  price  throughout  a  period  of  eleven  years. 

While  no  written  agreement  has  come  into  the  possession  of 
petitioner,  yet  the  facts  are  that  throughout  the  period  since  1901, 
the  constituent  companies  of  the  Corporation  and  the  Corporation 
itself  have  been  parties  to  agreements  or  undertakings  reached 
through  meetings  of  makers  of  such  rails  (who  naturally  were, 
and,  unrestrained  by  combination,  would  have  been,  competitors), 
by  which  competition  and  commerce  and  trade  have  been  re¬ 
strained  and  said  prices  have  been  thus  maintained  in  con¬ 
travention  of  the  Anti-trust  Act.  The  greatest  factor  in  produc¬ 
ing  this  unlawful  result  has  been  the  Corporation. 

THE  WIRE  ROPE  COMBINATION. 

On  the  first  day  of  January,  1908,  the  American  Steel  & 
Wire  Company  of  New  Jersey ;  Broderick  &  Bascoin  Rope  Com¬ 
pany,  a  corporation  ;  Hazard  Manufacturing  Company,  a  corpora¬ 
tion  ;  A.  Leschen  &  Sons  Rope  Company,  a  corporation ;  John  A. 
Roebling’s  Sons  Company,  a  corporation,  and  Trenton  Iron 


52 


Company,  a  corporation,  all  then  being  engaged  in  carrying 
on  the  business  of  manufacturing  and  dealing  in  wire  rope, 
a  useful  article  of  merchandise,  and  selling  same  not  only 
in  the  States  where  they  were  manufactured  but  in  other 
States  of  the  United  States,  and  being  engaged  in  trade  and  com¬ 
merce  in  said  wire  rope  among  the  several  States  of  the  United 
States  and  in  foreign  countries,  and  producing  in  the  aggregate 
eighty  per  cent,  of  the  entire  amount  of  wire  rope  consumed  in 
the  United  States  and  being  when  unrestrained  by  self-imposed 
agreement  between  each  other,  competitors  in  such  interstate 
business,  trade  and  commerce,  entered  into  upon  the  said  day  and 
carried  on  an  unlawful  combination  and  conspiracy  in  restraint 
of  said  business,  trade  and  commerce,  and  since  the  said  day 
continuously  have,  through  such  unlawful  combination  and  con¬ 
spiracy,  wrongfully  and  unduly  restrained  the  aforesaid  inter¬ 
state  business,  trade  and  commerce  from  said  date  until  and  on 
the  first  day  of  January,  1909. 

Under  said  unlawful  combination  and  conspiracy  the  said 
parties  sold  the  wire  rope  manufactured  by  them  respectively  at 
arbitrary,  artificial  and  non-competitive  prices,  fixed,  determined 
and  agreed  upon  by  them  from  time  to  time,  which  prices  wTere 
greatly  in  excess  of  those  which  would  have  been  obtained  but 
for  such  unlawful  combination  and  conspiracy.  The  said  parties 
under  said  unlawful  combination  -and  conspiracy  limited  the 
amount  of  wire  rope  to  be  produced  by  each  of  them  to  a  fixed 
and  arbitrary  percentage,  to  be  determined  and  agreed  upon 
from  time  to  time,  which  would  be  different  from  the  normal 
and  natural  amount  thereof  that  they  would  each  otherwise  pro¬ 
duce,  but  for  such  unlawful  combination  and  conspiracy.  Under 
said  agreement  and  combination  they  conducted  their  trade  and 
commerce  in  said  wire  rope  so  as  to  destroy  and  prevent  all  com¬ 
petition  between  them  and  to  injure  the  business,  trade  and  com¬ 
merce  in  the  United  States  in  wire  rope  of  all  other  than  them¬ 
selves  engaged  in  such  business.  In  furtherance  of  said  combi¬ 
nation  and  conspiracy  they,  on  or  about  the  first  of  January, 
1908,  entered  into  an  association  known  as  the  “  Wire  Rope 
Manufacturers,”  under  which  they  held  regular  meetings,  at 
which  each  member  of  the  association  had  a  vote  on  all  ques¬ 
tions  coming  before  the  association.  Under  and  by  virtue  of 
said  agreement  they  agreed  upon  and  fixed  an  arbitrary  rating 


53 


for  each  of  said  corporations,  which  was  established  by  determin¬ 
ing  the  ratio  of  the  output  of  the  aforesaid  merchandise,  by  each 
of  said  corporations,  to  the  total  output  thereof  by  all  of  said  cor¬ 
porations  during  an  agreed  period  of  time,  which  said  ratios 
should  be  and  were  known  and  treated  by  said  parties  as  allot¬ 
ments  which  were  the  percentage  bases  upon  which  said  parties 
were  required  and  compelled  to  conduct  their  said  business, 
trade  and  commerce. 

They  agreed  upon  a  schedule  of  prices  at  which  they  should 
sell  the  wire  rope  thereafter  to  be  produced  by  them,  which 
prices  should  continue  in  force  until  changed  by  them. 

The  said  American  Steel  &  Wire  Company,  is  a  subsidiary  of 
the  Corporation  and  has  at  all  times  since  about  April  1,  1901, 
been  controlled  by  it,  and  in  entering  into  said  unlawful  combi¬ 
nation  and  agreement  and  in  its  conduct  in  pursuance  of  same, 
it  acted  under  the  authority  and  sanction  of  the  Corporation. 

THE  RUBBER  COVERED  WIRE  COMBINATION. 

On  the  first  day  of  June,  1908,  the  American  Steel  &  Wire 
Company  of  New  Jersey,  the  American  Electrical  Works,  a  cor¬ 
poration  ;  Bishop  Gutta-Percha  Company,  a  corporation ;  Crescent 
Belting  and  Packing  Company,  a  corporation;  Habirshaw  Wire 
Company,  a  corporation  ;  Hazard  Manufacturing  Company,  a  cor¬ 
poration  ;  Indiana  Rubber  and  Insulated  Wire  Company,  a  corpo¬ 
ration  ;  Marion  Insulated  Wire  and  Rubber  Company,  a  corpo¬ 
ration  ;  National  Indiana  Rubber  Company,  a  corporation ;  New 
York  Insulated  Wire  Company,  a  corporation  ;  Phillips  Insulated 
Wire  Company,  a  corporation ;  John  A.  Roebling’s  Sons  Com¬ 
pany,  a  corporation  ;  Safety  Insulated  Wire  and  Cable  Company, 
a  corporation  ;  Simplex  Electrical  Company,  a  corporation ;  Stand¬ 
ard  Underground  Cable  Company,  a  corporation ;  General  Elec¬ 
tric  Company,  a  corporation,  being  then  engaged  in  carrying  on 
the  business  of  manufacturing  and  dealing  in  rubber-covered 
telephone  and  telegraph  wires,  useful  articles  of  merchandise,  and 
selling  the  same  in  the  States  where  they  were  manufactured, 
and  also  in  other  States  of  the  United  States,  and  in  shipping 
the  same  for  the  purposes  of  such  sale  from  their  respective  fac¬ 
tories  into  the  different  States  of  the  United  States,  and  produc¬ 
ing  in  the  aggregate  not  less  than  eighty  per  cent  of  the  entire 
amount  of  rubber-covered  telephone  and  telegraph  wire  consumed 


54 


in  the  United  States,  and  being  previous  thereto  and  at  that  time, 
except  when  restrained  by  unlawful  agreement,  competitors  of 
each  other  in  said  business,  trade  and  commerce,  entered  into  an 
unlawful  combination  and  conspiracy  in  restraint  of  trade  and 
commerce  in  said  article  among  the  several  States  and  con¬ 
tinuously  acted  thereunder  for  a  long  period  thereafter.  By  said 
agreement  and  combination  they  sold  their  several  products  of 
said  wires  in  the  several  States  of  the  United  States  at  arbitrary, 
artificial  and  non-competitive  prices,  fixed  and  agreed  upon  by 
them  from  time  to  time,  which  were  in  excess  of  the  prices  which 
would  have  been  demanded  for  such  wire  but  for  such  unlawful 
combination  and  conspiracy. 

By  said  combination  they  limited  the  amount  of  rubber-covered 
telephone  and  telegraph  wires  to  be  produced  by  each  of  them 
to  a  fixed  and  arbitrary  percentage  to  be  determined  and  agreed 
upon  by  them  from  time  to  time,  which  would  be  different  from 
the  normal  and  natural  amount  thereof  that  they  would  each 
otherwise  produce  but  for  such  unlawful  combination  and  con¬ 
spiracy.  By  said  unlawful  agreement  and  combination  they  con¬ 
ducted  their  respective  business,  trade  and  commerce  aforesaid 
so  as  to  destroy  and  prevent  all  competition  between  themselves 
and  to  injure  and  destroy  the  business,  trade  and  commerce  in 
the  United  States  in  rubber-covered  telephone  and  telegraph 
wires  of  all  other  persons  and  corporations  engaged  in  the  manu¬ 
facture  and  sale  of  same.  In  pursuance  of  said  agreement,  on  the 
first  day  of  June,  1908,  they  entered  into  a  voluntary  association, 
known  as  “  the  rubber-covered  wire  association,”  which  said 
association  was  to  continue  until  the  first  day  of  February,  1913, 
and  which  did  continue  until  about  the  time  that  the  said  par¬ 
ties  were  indicted  therefor  in  June,  1911,  in  the  United  States 
Circuit  Court  for  the  Southern  District  of  New  York. 

The  said  American  Steel  and  Wire  Company  is  a  subsidiary  of 
the  Corporation  and  has  at  all  times  since  about  April  1,  1901, 
been  controlled  by  it,  and  in  entering  into  said  unlawful  combi¬ 
nation  and  agreement  and  in  its  conduct  in  pursuance  of  same 
it  acted  under  the  authority  and  sanction  of  the  Corporation. 

THE  HORSESHOE  MANUFACTURERS’  COMBINATION. 

On  the  first  day  of  June,  1908,  the  American  Steel  and  Wire 
Company  of  New  Jersey,  American  Horseshoe  Company,  a 


55 


corporation ;  Bryden  Horseshoe  Company,  a  corporation ;  Old 
Dominion  Iron  and  Nail  Works,  a  corporation  ;  Phoenix  Horse¬ 
shoe  Company  of  Illinois,  a  corporation;  Rhode  Island-Perkins 
Horseshoe  Company,  a  corporation ;  being  engaged  in  the  busi¬ 
ness  of  manufacturing  and  dealing  in  horse  and  mule  shoes,  use¬ 
ful  articles  of  merchandise,  selling  same  in  the  States  of  the 
United  States  other  than  those  where  they  were  manufactured, 
and  in  shipping  the  same  from  their  respective  factories  in  the 
different  States  to  other  States  and  Territories  of  the  United  States 
and  producing  in  the  aggregate  seventy  per  cent,  of  the  entire 
number  of  horse  and  mule  shoes  consumed  in  the  United  States, 
and  being  competitors  in  interstate  business,  trade  and  commerce 
in  said  products  when  not  restrained  by  unlawful  combination 
among  themselves,  entered  into  an  unlawful  combination  and 
conspiracy,  wrongfully  and  unduly  to  restrain  the  aforesaid  inter¬ 
state  business,  trade  and  commerce,  and  in  pursuance  of  said 
combination  after  said  date,  down  to  about  the  29th  of  June,  1911, 
continuously  carried  out  said  unlawful  combination  and  con¬ 
spiracy  and  restrained  trade  and  commerce  among  the  States 
in  said  products. 

By  said  unlawful  agreement  they  have  sold  horse  and  mule 
shoes  manufactured  by  them  respectively,  at  arbitrary,  artificial 
and  non-competitive  prices,  fixed  and  determined  by  them  from 
time  to  time,  which  were  greatly  in  excess  of  those  which  would 
have  been  demanded  but  for  such  unlawful  combination  and 
conspiracy. 

By  said  unlawful  agreement,  they  have  limited  the  amount 
of  horse  and  mule  shoes  to  be  produced  by  each  of  them  to  a 
fixed  and  arbitrary  percentage  to  be  determined  and  agreed  upon 
by  them  from  time  to  time,  different  from  the  normal  and 
natural  amount  that  they  would  respectively  produce  but  for 
such  unlawful  combination  and  agreement. 

By  said  unlawful  agreement,  they  conducted,  respectively,  their 
business,  trade  and  commerce,  so  as  to  destroy  all  competition 
between  themselves  in  said  business,  trade  and  commerce  and  so 
as  to  injure  and  destroy  the  business,  trade  and  commerce  in  the 
United  States  in  horse  and  mule  shoes  of  all  persons  and  cor¬ 
porations  other  than  those  with  which  said  persons  were  con¬ 
nected  as  aforesaid. 


56 


On  the  said  first  day  of  June,  1908,  said  persons,  in  furtherance 
of  and  pursuant  to  said  unlawful  combination  and  conspiracy, 
by  written  articles  of  agreement,  formed  an  association  known  as 
the  “  HORSESHOE  MANUFACTURERS’  ASSOCIATION.” 

The  said  American  Steel  and  Wire  Company  is  a  subsidiary  of 
the  Corporation  and  has  at  all  times  since  about  April  1,  1901, 
been  controlled  by  it,  and  in  entering  into  said  unlawful  combi¬ 
nation  and  agreement,  and  in  its  conduct  in  pursuance  of  same, 
it  acted  under  the  authority  and  sanction  of  the  Corporation. 

THE  UNDERGROUND  POWER  CABLE  COMBINATION. 

On  the  first  day  of  June,  1908,  the  American  Steel  &  Wire 
Company,  of  New  Jersey;  National  Conduit  and  Cable  Company, 
a  corporation;  John  A.  Roebling’s  Sons  Company,  a  corporation; 
and  Standard  Underground  Cable  Company,  a  corporation,  then 
engaged  severally  in  carrying  on  the  business  of  manufacturing 
and  dealing  in  underground  power  cables,  a  useful  article  of  mer¬ 
chandise,  and  manufacturing  large  quantities  of  same,  and  selling 
it  not  only  in  the  States  wherein  they  severally  manufactured  it 
but  in  the  other  States  of  the  United  States  and  in  shipping  the 
same  from  their  respective  factories  into  the  different  States  of 
the  United  States  for  the  purposes  of  sale,  and  producing  in  the 
aggregate  ninety-five  per  cent  of  the  entire  amount  of  under¬ 
ground  power  cable  consumed  in  the  United  States,  and  being  com¬ 
petitors  of  each  other  in  said  business,  trade  and  commerce  except 
when  restrained  by  unlawful  combination,  entered  into  and  car¬ 
ried  on  continuously  until  the  first  day  of  April,  1909,  an  unlaw¬ 
ful  combination  and  conspiracy  in  restraint  of  the  said  business, 
trade  and  commerce  in  underground  power  cable  among  the 
States. 

By  said  unlawful  agreement  they  sold  the  said  cable  produced 
by  them  respectively  at  arbitrary,  artificial  and  non-competitive 
prices,  fixed  by  them  from  time  to  time,  which  were  greatly  in 
excess  of  the  prices  which  would  have  been  demanded  but  for 
such  unlawful  combination  and  conspiracy. 

By  said  agreement,  they  limited  the  amount  of  underground 
cable  to  be  produced  by  them  severally  to  a  fixed  and  arbitrary 
percentage  agreed  upon  by  them  from  time  to  time,  which  was 
different  from  the  amount  thereof  that  they  each  otherwise  would 
have  produced  but  for  such  unlawful  combination  and  conspiracy. 


57 


By  said  unlawful  combination  and  conspiracy  they  so  con¬ 
ducted  their  respective  business,  trade  and  commerce  aforesaid 
as  to  destroy  and  prevent  all  competition  between  themselves 
and  to  injure  the  business,  trade  and  commerce  in  the  United 
States  in  underground  power  cable  of  all  persons  or  corporations 
other  than  those  with  which  they  were  connected. 

On  the  first  day  of  June,  1908,  said  corporations  in  furtherance 
of  and  pursuant  to  said  unlawful  combination  and  conspiracy, 
by  written  articles  of  agreement,  formed  and  entered  into  a  vol¬ 
untary  association,  known  as  “the  underground  power  cable 
association,”  which  said  association  was  to  continue  until  the 
first  day  of  May,  1911. 

The  said  American  Steel  and  Wire  Company  is  a  subsidiary  of 
the  Corporation  and  has  at  all  times  since  about  April  1, 1901,  been 
controlled  by  it,  and  in  entering  into  said  unlawful  combination 
and  agreement  and  in  its  conduct  in  pursuance  of  same,  it  acted 
under  the  authority  and  sanction  of  the  Corporation. 

THE  WEATHERPROOF  AND  MAGNET  WIRE  COMBINATION. 

On  the  first  day  of  June,  1908,  the  American  Steel  and  Wire 
Compan}7  of  New  Jersey;  the  American  Electrical  Works,  a  cor¬ 
poration  ;  the  Ansonia  Brass  and  Copper  Company,  a  corporation; 
the  Ansonia  Electrical  Company,  a  corporation;  Benedict  &  Burn¬ 
ham  Manufacturing  Company,  a  corporation;  the  Hazard  Manu¬ 
facturing  Company,  a  corporation;  Alfred  F.  Moore  and  Antoine 
Bournonville,  partners  doing  business  under  the  name  of  Alfred 
F.  Moore;  the  National  Conduit  and  Cable  Company,  a  corpora¬ 
tion;  the  Phillips  Insulated  Wire  Company,  a  corporation;  John 
A.  Roebling’sSons  Company,  a  corporation;  the  Standard  Under¬ 
ground  Cable  Company,  a  corporation;  engaged  severally  in  car¬ 
rying  on  the  business  of  manufacturing  and  dealing  in  weather 
proof  and  magnet  wires,  useful  articles  of  merchandise,  and  sell¬ 
ing  same  in  the  several  States  other  than  where  they  were  man¬ 
ufactured  and  in  shipping  same  from  their  said  factories  into  the 
several  States  and  Territories  of  the  United  States  other  than 
those  wherein  they  were  manufactured,  and  producing  in  the  ag¬ 
gregate  ninety  per  cent  of  the  entire  amount  of  weatherproof  and 
magnet  wires  consumed  in  the  United  States,  and  being  competi¬ 
tors  in  said  interstate  business,  trade  and  commerce  with  each 
other,  except  when  restrained  by  unlawful  combination,  entered 


58 


into  an  unlawful  combination  and  conspiracy  to  wrongfully  and 
unduly  restrain  the  aforesaid  interstate  business,  trade  and  com¬ 
merce,  so  then  and  since  then  carried  on  and  conducted  by  the 
aforesaid  corporations  and  co-partnership;  and  from  said  first  day 
of  June,  1908,  and  continuously  and  at  all  times  from  said  date 
until  and  on  the  twentieth  day  of  November,  1908,  all  of  said 
parties  were  knowingly  and  willfully  engaged  in  said  unlawful 
combination  and  conspiracy  and  in  furtherance  of  its  unlawful 
objects  for  the  purposes  aforesaid,  in  restraint  of  said  business, 
trade  and  commerce  in  weatherproof  and  magnet  wires.  By  said 
agreement  said  parties  sold  the  weatherproof  and  magnet  wires 
produced  by  them  respectvely,  at  arbitrary,  artificial  and  non¬ 
competitive  prices,  fixed  and  agreed  upon  by  them  from  time  to 
time,  in  excess  of  what  would  have  been  demanded  but  for  such 
unlawful  combination  and  conspiracy. 

By  said  unlawful  combination  said  parties  limited  the  amount 
of  such  wires  to  be  produced  by  them  severally,  to  a  fixed  and 
arbitrary  percentage  determined  and  agreed  upon  by  them  from 
time  to  time,  which  was  different  from  the  amounts  that  they 
otherwise  respectively  would  have  produced  but  for  such  un¬ 
lawful  combination  and  conspiracy. 

By  said  combination  and  conspiracy  they  conducted  their  re¬ 
spective  business,  trade  and  commerce  aforesaid  so  as  to  destroy 
and  prevent  all  competition  between  themselves  and  so  as  to  in¬ 
jure  and  destroy  the  business,  trade  and  commerce  in  the  United 
States  in  weatherproof  and  magnet  wires  of  all  persons  or  corpor¬ 
ations  other  than  those  with  which  they  were  connected. 

On  the  first  day  of  June,  1908,  they,  in  furtherance  of  and  pur¬ 
suant  to  the  aforesaid  unlawful  combination  and  conspiracy,  by 
written  articles  of  agreement,  formed  and  entered  into  an  associ¬ 
ation  known  as  “the  weatherproof  and  magnet  wire  asso¬ 
ciation,”  which  was  to  continue  until  the  first  day  of  May,  nine¬ 
teen  hundred  and  eleven. 

The  said  American  Steel  and  Wire  Company  is  a  subsidiary  of 
the  Corporation,  and  has  at  all  times  since  about  April  1,  1901, 
been  controlled  by  it,  and  in  entering  into  said  unlawful  combi¬ 
nation  and  agreement  and  in  its  conduct  in  pursuance  of  same,  it 
acted  under  the  authority  and  sanction  of  the  Corporation. 

Petitioner  further  alleges  that  previous  to  the  agreement  afore¬ 
said  the  said  American  Steel  and  Wire  Company  of  New  Jersey 


59 


entered  into  other  similar  agreements  from  time  to  time  with  con¬ 
cerns  that  were  its  competitors,  which  agreements  were  for  the 
same  purpose  and  effect  as  the  said  agreement  of  1908,  were  car¬ 
ried  out  substantially  in  the  same  way  and  with  the  same  effect, 
and  that  this  was  done  with  the  consent  of  the  Corporation. 

THE  LEAD  ENCASED  RUBBER  CABLE  COMBINATION. 

On  the  first  day  of  June,  1908,  the  American  Steel  and  Wire 
Company  of  New  Jersey;  Habirshaw  Wire  Company,  a  corpora¬ 
tion  ;  John  A.  Roebling’s  Sons  Company,  a  corporation  ;  Safety 
Insulated  Wire  and  Cable  Company,  a  corporation  ;  Simplex  Elec¬ 
trical  Company,  a  corporation;  Standard  Underground  Cable 
Company,  a  corporation ;  then  engaged  in  carrying  on  the  busi¬ 
ness  of  manufacturing  and  dealing  in  lead-encased  rubber  in¬ 
sulated  cable,  a  useful  article  of  merchandise,  and  selling  same 
in  the  several  States  of  the  United  States  other  than  those  wherein 
their  respective  factories  are  situated,  and  shipping  same  from 
their  respective  factories  to  States  and  Territories  other  than  those 
wherein  said  factories  were  located,  and  producing  in  the  aggre¬ 
gate  eighty  per  cent  of  the  entire  amount  of  said  cable  consumed 
in  the  United  States,  and  being  competitors  in  said  business, 
except  when  restrained  by  unlawful  combination  and  conspiracy 
entered  into  by  them,  entered  into  an  unlawful  combination  and 
conspiracy,  wrongfully  and  unduly  to  restrain  the  aforesaid  inter¬ 
state  business,  trade  and  commerce  so  then  and  since  then  carried 
on  and  conducted  by  them,  and  from  said  first  day  of  June,  1908, 
and  continuously  and  at  all  times  from  said  date  until  the  tenth 
day  of  January,  1910,  all  of  said  parties  engaged  in  said  unlaw¬ 
ful  combination  and  conspiracy  in  restraint  of  the  said  trade  and 
commerce  in  said  cable. 

By  said  combination  and  agreement,  they  sold  the  said  cable 
produced  by  them,  respectively,  at  arbitrary,  artificial  and  non¬ 
competitive  prices,  fixed,  determined  and  agreed  upon  by  them, 
which  were  greatly  in  excess  of  those  which  would  have  been 
demanded  but  for  such  unlawful  combination  and  conspiracy. 

By  said  combination  they  limited  the  amount  of  such  cable  to 
be  produced  by  them  respectively  to  a  fixed  and  arbitrary  per¬ 
centage  agreed  upon  by  them,  which  was  different  from  the 
amount  that  they  otherwise  would  have  respectively  produced 
but  for  such  unlawful  combination  and  conspiracy. 


By  said  combination  and  conspiracy  they  so  conducted  their 
respective  business,  trade  and  commerce  aforesaid  as  to  destroy 
all  competition  between  themselves  and  to  injure  and  destroy  the 
business,  trade  and  commerce  in  the  United  States  in  said  cable 
of  all  persons  or  corporations  other  than  those  with  which  they 
were  connected. 

On  the  said  first  day  of  June,  1908,  said  parties  in  furtherance 
of  and  pursuant  to  the  aforesaid  unlawful  combination  and  con- 
spirac}7,  by  written  articles  of  agreement,  formed  and  entered  into 
a  voluntary  association  known  as  “the  lead  encased  rubber 
insulated  cable  association,”  which  was  to  continue  until  the 
first  day  of  January,  1911. 

The  said  American  Steel  and  Wire  Company  is  a  subsidiary  of 
the  Corporation,  and  has  at  all  times  since  about  April  1,  1901, 
been  controlled  by  it,  and  in  entering  into  said  unlawful  combina¬ 
tion  and  agreement,  and  in  its  conduct  in  pursuance  of  same,  it 
acted  under  the  authority  and  sanction  of  the  Corporation. 

THE  BARE  COPPER  WIRE  COMBINATION. 

On  the  first  day  of  June,  1908,  the  American  Steel  and  Wire 
Company  of  New  Jersey,  American  Electrical  Works,  a  corpor¬ 
ation;  Ansonia  Brass  and  Copper  Company,  a  corporation;  Bene¬ 
dict  &  Burnham  Manufacturing  Company,  a  corporation;  Coe 
Brass  Manufacturing  Company,  a  corporation;  National  Conduit 
&  Cable  Company,  a  corporation;  John  A.  Roebling’s  Sons  Com- 
pan}7,  a  corporation,  and  Standard  Underground  Cable  Company, 
a  corporation;  then  engaged  in  carrying  on  the  business  of  manu¬ 
facturing  and  dealing  in  bare  copper  wire,  a  useful  article  of  mer¬ 
chandise,  and  selling  same  in  the  several  States  of  the  United 
States  other  than  those  wherein  their  respective  factories  are  situ¬ 
ated,  and  shipping  same  from  their  respective  factories  to  States 
and  Territories  other  than  those  wherein  said  factories  are  locat¬ 
ed,  and  producing  in  the  aggregate  ninety-five  per  cent  of  the 
entire  amount  of  bare  copper  wire  consumed  in  the  United 
States,  and  being  competitors  in  said  business,  except  when  re¬ 
strained  by  unlawful  combination  and  conspiracy  entered  into 
by  them,  entered  into  an  unlawful  combination  and  conspiracy 
wrongfully  and  unduly  to  restrain  the  aforesaid  interstate  busi¬ 
ness,  trade  and  commerce,  so  then  and  since  then  carried  on  and 
conducted  by  them,  and  from  said  first  day  of  June,  1908,  and 


61 


continuously  and  at  all  times  from  said  date  until  the  twenty- 
second  day  of  November,  1909,  all  the  said  parties  engaged  in 
said  unlawful  combination  and  conspiracy  in  restraint  of  the 
said  trade  and  commerce  in  said  bare  copper  wire. 

By  said  combination  and  agreement  they  sold  the  said  bare 
copper  wire  produced  by  them,  respectively,  at  arbitrary,  artifi¬ 
cial  and  non-competitive  prices,  fixed,  determined  and  agreed 
upon  by  them,  which  were  greatly  in  excess  of  those  which  would 
have  been  demanded  but  for  such  unlawful  combination  and 
conspiracy. 

By  said  combination  they  limited  the  amount  of  such  copper 
wire  to  be  produced  by  them,  respectively,  to  a  fixed  and  arbi¬ 
trary  percentage,  agreed  upon  by  them,  which  was  different  from 
the  amount  that  they  otherwise  would  have  respectively  pro¬ 
duced  but  for  such  unlawful  combination  and  conspiracy. 

By  said  combination  and  conspiracy  they  so  conducted  their 
respective  business,*  trade  and  commerce  aforesaid,  as  to  destroy 
all  competition  between  themselves,  and  to  injure  and  destroy 
the  business,  trade  and  commerce  in  the  United  States  in  said 
copper  wire,  of  all  persons  or  corporations  other  than  those  with 
which  they  were  connected. 

On  the  first  day  of  June,  1908,  said  parties,  in  furtherance  of 
and  pursuant  to  the  aforesaid  unlawful  combination  and  con¬ 
spiracy,  by  written  articles  of  agreement,  formed  and  entered  in¬ 
to  a  voluntary  association  known  as  “the  bare  copper  wire 
association,”  which  was  to  continue  until  the  first  day  of  May, 
1911. 

The  said  American  Steel  and  Wire  Company  is  a  subsidiary 
of  the  Corporation,  and  has  at  all  times  since  about  April  1,1901, 
been  controlled  by  it,  and  in  entering  into  said  unlawful  com¬ 
bination  and  agreement,  and  in  its  conduct  in  pursuance  of  same, 
it  acted  under  the  authority  and  sanction  of  the  Corporation. 

Petitioner  further  alleges  that  previous  to  the  agreement 
aforesaid,  the  said  American  Steel  and  Wire  Company  of  New 
Jersey  entered  into  other  similar  agreements  from  time  to  time 
with  concerns  that  were  its  competitors,  which  agreements  were 
for  the  same  purpose  and  effect  as  the  said  agreement  of  1908, 
were  carried  out  substantially  in  the  same  way  and  with  the 
same  effect,  and  that  this  was  done  with  the  consent  of  the 
Corporation. 


62 


OTHER  POOLS  AND  AGREEMENTS. 

In  addition  to  said  pools  and  agreements  specifically  referred 
to,  other  constituent  companies  of  the  Corporation,  engaged  in 
making  and  selling  other  lines  of  products,  and  the  Corporation, 
have,  since  1901,  from  time  to  time,  entered  into  pools  and  agree¬ 
ments  with  concerns  which  were  their  competitors,  by  which 
they  have  suppressed  competition,  agreed  upon  and  maintained 
prices,  and  restrained  commerce  and  trade  among  the  States 
and  with  foreign  countries. 

XII. 

INTERLOCKING  DIRECTORATES. 

In  addition  to  pools,  a  more  euphonious,  refined,  but  none  the 
less  effective,  method  came  into  vogue.  Conditions  had  so 
changed  as  to  make  the  way  for  this  new  procedure  easy.  When 
the  iron  and  steel  products  were  made  by  independent  concerns, 
which,  in  their  desire  for  business,  broke  out  from  time  to  time 
in  sharp  competition,  the  only  method  of  restraint  was  an  agree¬ 
ment  or  pool,  and  this  was  not  always  effective,  for  they  fre¬ 
quently  played  false  to  such  combinations.  Under  the  policy  of 
the  Corporation  there  grew  up  a  community  of  interest  and  a 
power  to  influence  action  to  a  common  purpose,  never  exceeded 
in  the  commercial  history  of  the  world.  There  came  into  exist¬ 
ence  a  system  of  interlacing  of  directorates  which  embraced 
almost  the  entire  commercial  and  financial  powers  of  the  coun¬ 
try.  Appended  as  Exhibit  C,  is  a  list  of  the  officers  and  directors 
of  the  Corporation,  and  also  a  list  of  the  various  companies  with 
which  they  severally  were  connected,  as  of  the  year  1910.  This 
shows  the  status  substantially  as  it  had  been  for  preceding  years 
and  as  it  is  at  the  present  time.  It  has  been  a  constantly  grow¬ 
ing  system  since  the  creation  of  the  Corporation,  and  therefore 
the  personnel  and  alliances  vary  for  the  several  years  since  1901, 
but  the  system  and  the  power  achieved  by  it  have  been  practi¬ 
cally  the  same,  from  1901  down  to  the  present  time. 

George  F.  Baker  was  a  director  in  fifty-six  other  companies, 
among  them  being  trust  companies,  seven  banks,  eighteen  rail¬ 
road  companies,  the  Pullman  Company,  and  the  International 
Harvester  Company. 

Edmund  C.  Converse  was  a  director  in  twenty-eight  other 
companies,  among  them  being  banks,  trust  companies,  railroad 


63 


companies,  and  other  concerns,  which  are  large  consumers  of 
iron  and  steel.  He  was  a  director  in  the  Sheffield  Coal  &  Iron 
Company,  which  operates  in  the  Birmingham  district,  and  is  a 
natural  competitor  of  the  Corporation. 

William  E.  Corey  was  a  director  in  thirty-two  other  companies, 
most  of  them  constituent  companies  of  the  Corporation. 

John  F.  Dryden  was  a  director  in  three  large  trust  companies 
and  two  banks. 

Henry  C.  Frick  was  a  director  in  the  Chicago  &  Northwestern 
Railway  Co.,  the  Pennsylvania  R.  R.  Co.,  Philadelphia  &  Read¬ 
ing  Railway  Co.,  and  the  Union  Pacific  Railroad  Co.  The 
Pennsylvania  Railroad  Co.  dominates  the  Cambria  Steel  Co., 
and  the  Pennsylvania  Steel  Co.,  naturally  competitors  of  the 
Corporation,  but  which  have  under  the  operation  of  this  new 
system,  cooperated  with  it. 

Elbert  H.  Gary,  besides  being  a  director  in  the  constituent  com¬ 
panies  of  the  Corporation,  was  a  director  of  several  railroad  com¬ 
panies  and  the  International  Harvester  Company.  He  was  also 
a  director  in  six  important  banks  and  trust  companies. 

William  H.  Moore  was  a  director  in  several  large  railroad 
companies. 

J.  P.  Morgan  was  a  director  in  fifty-one  other  companies.  This 
includes  many  railroads  and  other  companies,  such  as  the  Pull¬ 
man  Company  and  the  Western  Union  Telegraph  Company. 

George  W.  Perkins  was  a  director  of  several  banks,  trust  com¬ 
panies  and  railroad  companies,  and  of  the  International  Harves¬ 
ter  Company. 

Norman  B.  Ream  was  a  director  of  a  number  of  large  railroad 
companies,  the  Pullman  Company,  the  International  Harvester 
Company,  and  several  banks  and  trust  companies. 

John  D.  Rockefeller,  Jr.,  was  a  director  of  the  Delaware,  Lacka¬ 
wanna  &  Western  R.  R.  Co.  and  of  the  Standard  Oil  Co. 

Charles  Steele  was  a  director  of  a  number  of  large  railroad 
companies  and  the  International  Harvester  Co. 

Henry  Walters  was  a  director  in  several  large  railroad  com¬ 
panies  and  in  the  Western  Union  Telegraph  Co.  He  was  also 
director  of  the  Lackawanna  Steel  Co.,  naturally  a  competitor  of 
the  Corporation,  but  which  has  acted  in  harmony  with  it  under 
the  new  system. 


64 


All  of  the  said  railroad  companies,  the  Pullman  Company,  the 
International  Harvester  Company,  and  the  Western  Union  Tele¬ 
graph  Company,  are  heavy  consumers  of  iron  and  steel. 

Through  its  directors  thus  distributed  the  Corporation  is  in 
direct  touch  with  all  of  the  large  railroad  and  steamship  com¬ 
panies  of  the  United  States,  such  powerful  concerns  as  the  Stand¬ 
ard  Oil  Company,  the  Pullman  Company,  the  International 
Harvester  Co.,  and  the  Western  Union  Telegraph  Co.,  and  with 
the  overwhelming  majority  in  money  and  power  of  the  banks 
and  trust  companies  of  the  United  States.  The  possibilities  of 
the  power  and  control  that  may  thus  be  exerted  over  trade  and 
commerce  is  inestimable.  The  power  and  control  that  have 
been  exerted  by  the  Corporation,  largely  through  the  grasp  of  its 
tenacles  thus  thrown  out  upon  the  consumer,  competitors  and 
capital,  is  incompatible  with  the  healthy  commercial  life  of  the 
nation. 

XIII. 

COMBINATIONS  OTHER  THAN  WRITTEN  POOLS  OR 

AGREEMENTS. 

Under  the  auspices  of  the  Corporation,  these  interests,  nat¬ 
urally  competitive,  but  harmonized  by  this  net-work  of  cor¬ 
relations,  and  overshadowed  and  dominated  by  the  power  of  the 
Corporation  arising  from  its  preeminence  in  the  business,  and  the 
irresistible  strength  of  its  alliances,  come  together,  from  time  to 
time,  find  out  the  views  of  the  Corporation  in  respect  of  prices 
and  output,  and  all  that  hitherto  was  affected  by  pools  and  for¬ 
mal  agreements,  reach  a  common  understanding  and  purpose, 
and  proceed  to  carry  them  out.  It  is  not  here  alleged  that  merely 
assembling  and  mutually  exchanging  information  and  declara¬ 
tion  of  purpose  amounts  to  an  agreement  or  combination  in  re¬ 
straint  of  trade.  These  meetings  and  their  results  have  gone 
further.  What  they  actually  accomplished  shows  the  great  and 
dangerous  power  achieved  by  the  Corporation  through  unlawful 
combination  exercised  over  the  trade  and  commerce  of  the  coun¬ 
try.  The  concerted  action  taken  has  prevented  fluctuations  in 
prices  and  competition. 

At  the  meetings  have  been  represented,  of  the  iron  and  steel 
trade  in  the  United  States,  fully  ninety  per  cent  of  the  total.  In 
no  line  of  business  in  the  world  at  any  time  has  there  been  such 


65 


a  large  percentage  of  those  engaged  in  a  business  as  the  per¬ 
centage  of  those  in  this  country  who  at  these  meetings  go 
along  da}r  by  day,  hand  in  hand,  pursuing  the  same  course.  At 
the  time  of  one  of  these  meetings,  held  in  New  York,  January 
11,  1911,  there  was  not  in  this  country  a  demand  for  more  than 
fifty  per  cent  of  the  total  producing  capacity  in  the  lines  of  those 
there  represented,  and  there  was  not  enough  business  to  go  around, 
and  there  was  no  possible  way  of  protecting  themselves  from  com¬ 
petition  except  by  coming  to  an  understanding  that  each  would 
be  satisfied  with  a  proportion  of  the  business,  which  was  under¬ 
stood  by  all,  and  this  understanding  was  carried  out,  and  no  one 
of  them  competed  for  the  recognized  business  of  the  others. 

These  meetings  accomplished  more  than  did  the  old  pools  and 
agreements,  which  were  frequently  broken. 

It  was  understood  and  agreed  that  they  were  bound  to  protect 
one  another;  that  to  carry  out  this  purpose  their  honor  was  at 
stake  and  that  the  obligation  binding  on  them  was  even  dearer 
than  life  itself,  and  that  no  one  of  them  should  act  or  fail  to  act 
except  with  a  distinct  and  clear  understanding  that  his  honor 
was  involved,  and  that  this  was  more  binding  on  him  than  any 
written  or  verbal  contract. 

When  bidden  by  the  chief  executive  of  the  Corporation,  they 
came  at  any  time,  from  any  distance,  ready,  willing,  and  anxious 
to  turn  over  to  him  and  to  his  friends  all  that  was  in  their  minds 
and  in  their  hearts,  concerning  their  own  business. 

When  they  met,  the  chief  executive  of  the  Corporation  admon¬ 
ished  them  that  no  one  of  them  should  forget  the  high  moral  ob¬ 
ligation  he  was  under  toward  his  neighbor,  and  that  it  was  of  the 
highest  importance  at  that  particular  time  that  every  one  of  them 
should  have  a  keen  and  abiding  sense  of  the  personal  obligation 
which  he  had  toward  all  the  others,  and  to  make  no  mistake  of 
running  the  risk  of  trespassing  within  the  domain  of  the  rights 
of  his  neighbor  who  had  given  his  confidence  and  trust,  and  who 
was  willing  at  all  times  to  put  within  the  knowledge,  and  there¬ 
fore  more  or  less  under  the  charge  and  control  of  the  others,  the 
very  direction  of  his  affairs. 

By  these  meetings  and  interchange  of  information  and  under¬ 
standing  each  became  in  honor  bound  not  to  get  the  trade  of  the 
other,  and  each  by  the  concerted  action  acquired  participation  in 
the  direction  of  the  affairs  of  the  other. 


66 


The  main  purpose  of  the  meeting  of  January  11,  1911,  was  the 
question  of  maintaining  or  changing  the  prices  of  the  commodi¬ 
ties  in  which  they  dealt.  A  majority  came  to  a  consensus  which 
was  accepted  and  followed  by  all. 

At  these  meetings  they  not  only  exchanged  information,  but 
advocated  control  of  prices,  and  reached  a  common  understand¬ 
ing,  which  was  followed,  under  solemn  admonition  that  they 
were  bound  by  an  obligation  more  estimable  than  life. 

These  meetings  brought  about  the  maintenance  of  prices. 

It  was  understood  by  them  that  they  were  traveling  together, 
and  that  they  were  going  to  stand  together. 

They  understood  and  acted  upon  the  understanding  that  a 
statement  as  to  what  one  would  do  as  to  prices  or  output  was  a 
promise  and  a  pledge  upon  honor  to  the  others. 

At  the  meeting  of  January  11,  1911,  and  at  the  other  meetings, 
there  was  a  general  expression  of  opinion  that  prices  should  be 
maintained,  and  in  pursuance  of  this  understanding  and  agree¬ 
ment  they  were  maintained. 

When  an  understanding  was  reached,  individual  declarations 
were  made  of  intention  to  follow  the  movement. 

It  was  recognized  that  they  followed  the  policy  laid  out  for 
them  by  the  head  of  the  Corporation. 

This  meeting  of  January  11,  1911,  was  attended  by  about  eighty 
representatives  of  iron  and  steel  concerns,  being  a  large  majority  in 
number  and  output  of  such  concerns  in  the  United  States.  They 
understood  that  the  purpose  was  to  consider  the  prices  of  iron  and 
steel,  that  the  consensus  of  opinion  was  that  the  prices  should  not 
be  lowered,  but  that  they  should  be  maintained,  and  that  by 
virtue  of  what  occurred,  they  were  in  honor  bound  to  each  other 
to  maintain  them.  In  fact,  they,  in  pursuance  of  this  action,  did 
maintain  them. 

By  the  aforesaid  pools,  agreements,  meetings,  and  acts  the  Cor¬ 
poration,  the  said  several  companies  and  individual  defendants, 
in  addition  to  the  several  unlawful  agreements  and  combinations 
by  which  all  of  the  companies  and  properties  aforesaid  were 
brought  under  one  control,  have  combined  or  conspired  in  re¬ 
straint  of  trade  and  commerce  among  the  several  States  and  with 
foreign  nations  within  the  meaning  of  Section  1,  and  to  mono¬ 
polize  a  part  of  the  trade  or  commerce  among  the  several  states 
and  with  foreign  nations  within  the  meaning  of  Section  2,  of  the 
Anti-trust  Act. 


67 


PRAYER. 

In  consideration  whereof,  and  inasmuch  as  adequate  remedy  in 
the  premises  can  only  be  obtained  in  a  court  of  equity,  the  United 
States  of  America  prays  Your  Honors: 

(1)  To  order,  adjudge  and  decree  that  the  combinations  and 
conspiracies  and  monopolizations  of  trade  and  commerce  herein¬ 
before  described  are  unlawful,  and  that  all  acts  done  or  to  be  done 
to  carry  out  the  same,  or  any  part  thereof,  are  in  violation  of  the 
Actof  Congress  of  July  2, 1890,  entitled  “An  Act  to  Protect  Trade 
and  Commerce  against  unlawful  Restraints  and  Monopolies.” 

(2)  That  the  defendants  and  each  and  every  one  of  them,  and 
the  officers,  directors,  stockholders  and  agents  of  the  defendant 
corporations  and  of  each  and  every  one  of  them,  be  perpetually 
enjoined  from  doing  any  act  in  pursuance  of  or  for  the  purpose 
of  carrying  out  the  same. 

(3)  That  the  United  States  Steel  Corporation,  in  and  of  itself, 
as  well  as  each  and  all  of  the  elements  composing  it,  whether 
separate  or  individual,  whether  considered  collectively  or  sepa¬ 
rately,  be  decreed  to  be  illegal  and  in  restraint  of  trade,  and  an 
attempt  to  monopolize  and  a  monopolization  within  the  first  and 
second  sections  of  said  act  of  Congress  of  July  2,  1890,  and  that 
it  be  dissolved. 

(4)  That  each  and  all  of  the  said  constituent  or  subordinate 
co  mpanies  shown,  as  aforesaid,  to  have  been  combined  in  restraint 
of  trade  and  commerce  and  in  monopolization  of  trade  or  com¬ 
merce  within  the  meaning  of  the  Anti-trust  Act,  each  in  and 
of  itself,  as  well  as  each  and  all  the  elements  composing 
each  respectively,  whether  considered  collectively  or  separately, 
be  decreed  to  be  illegal,  in  restraint  of  trade,  and  an  attempt  to 
monopolize  and  a  monopolization  within  the  first  and  second 
sections  of  said  act,  and  that  each  be  dissolved. 

(5)  That  the  holding  of  stock  by  any  one  of  the  defendant  cor¬ 
porations  in  another  of  the  defendant  corporations  under  the  cir¬ 
cumstances  shown,  be  declared  illegal,  and  that  each  of  them  be 
enjoined  from  continuing  to  hold  or  own  such  shares  and  from 
exercising  any  right  in  connection  therewith. 

(6)  That  the  said  several  defendant  corporations,  shown  as 
aforesaid  to  be  constituents  or  subsidiaries  of  the  United  States 


68 


Steel  Corporation,  be  enjoined  and  prohibited  from  declaring  or 
paying  any  dividends  to  the  said  United  States  Steel  Corporation 
or  to  any  person  or  corporation  for  its  use. 

(7)  That  it  be  decreed  that  the  several  individual  defendants 
combined  each  with  other  persons  and  corporations  to  restrain 
trade  and  commerce  and  to  attempt  to  monopolize  and  in 
monopolizing  within  the  first  and  second  sections  of  said  Act 
and  that  each  of  them  be  enjoined  from  continuing  to  carry 
out  the  purposes  of  any  of  the  above-described  combinations 
and  conspiracies  and  attempts  to  restrain  commerce  and  trade,  or 
to  monopolize  any  part  of  commerce  and  trade  among  the  States 
and  with  foreign  nations. 

(8)  That  such  orders  and  decrees  be  made  in  respect  of  the 
stock  issued  under  the  several  combinations  aforesaid  as  shall  be 
in  accordance  with  equity  and  good  conscience,  and  that  such  dis¬ 
position  be  made  of  the  said  various  properties  as  shall  effectuate 
the  purposes  of  the  said  Anti-trust  Act. 

(9)  That  the  said  lease  entered  into  as  aforesaid  by  the  Great 
Northern  interests  and  the  Great  Western  Mining  Company  be 
decreed  to  be  illegal,  in  restraint  of  trade  and  commerce,  an  at¬ 
tempt  to  monopolize  and  a  monopolization  within  the  first  and 
second  sections  of  said  Act,  and  that  the  same  be  now  cancelled. 

(10)  The  United  States  also  prays  for  such  other  and  further 
relief  as  the  nature  of  the  case  may  require  and  the  court  may 
deem  proper  in  the  premises. 

To  the  end,  therefore,  that  the  United  States  of  America  may 
obtain  the  relief  to  which  it  is  justly  entitled  in  the  premises,  may 
it  please  Your  Honors  to  grant  to  it  writs  of  subpoena  directed  to 
the  said  defendants,  United  States  Steel  Corporation,  Carnegie 
Steel  Company,  Carnegie  Company  of  New  Jersey,  Federal  Steel 
Company,  National  Steel  Company,  American  Steel  and  Wire 
Company  of  New  Jersey,  National  Tube  Company,  Shelby  Steel 
Tube  Company,  American  Tin  Plate  Company,  American  Sheet 
and  Tin  Plate  Company,  American  Sheet  Steel  Company,  Ameri¬ 
can  Steel  Hoop  Company,  American  Bridge  Company,  Lake  Su¬ 
perior  Consolidated  Iron  Mines,  Union  Steel  Company,  Clairton 
Steel  Company,  H.  C.  Frick  Coke  Company,  Tennessee  Coal,  Iron 
and  Railroad  Company,  Great  Western  Mining  Company,  West 
Missabe  Land  Company,  Limited;  Wright  Land  Company,  Lim¬ 
ited;  Davis  Land  Company,  Limited;  Wells  Land  Company,  Lim- 


69 


ited ;  Stone  Land  Company,  Limited  ;  Wabigon  Iron  Company, 
Minosin  Iron  Company,  Nibiwa  Iron  Company,  Wenona  Iron  Com¬ 
pany,  Minawa  Iron  Company,  Leonard  Iron  Mining  Company, 
Arthur  Iron  Mining  Company,  Fillmore  Iron  Mining  Company, 
Harrison  Iron  Mining  Company,  Jackson  Iron  Mining  Company, 
Polk  Iron  Mining  Company,  Tyler  Iron  Mining  Company,  Van 
Buren  Iron  Mining  Company,  Louis  W.  Hill,  James  N.  Hill,  W alter 
J.  Hill,  Edward  T.  Nichols,  J.  H.  Gruber,  said  named  individuals 
being  sued  as  Trustees,  J.  P.  Morgan,  Charles  Steele,  George  W. 
Perkkins,  E.  H.  Gary,  C.  M.  Schwab,  Andrew  Carnegie,  Henry  C. 
Frick,  James  Gayley,  William  H.  Moore,  J.  H.  Moore,  Edmund  C. 
Converse,  Percival  Roberts,  Jr.,  Daniel  G.  Reid,  Norman  B.  Ream, 
John  D.  Rockefeller,  John  D.  Rockefeller,  Jr.,  P.  A.  B.  Widener, 
and  William  P.  Palmer,  and  each  and  every  one  of  them,  com¬ 
manding  them  and  each  of  them  to  appear  herein  and  answer, 
but  not  under  oath,  (answer  under  oath  being  hereby  expressly 
waived),  the  allegations  contained  in  the  foregoing  petition  and 
abide  by  and  perform  such  order  and  decree  as  the  Court  may 
make  in  the  premises,  and  upon  hearing  hereof  to  permanently 
enjoin  said  defendants  as  hereinbefore  prayed,  and  pending  a 
final  hearing  of  this  case  cause  a  temporary  restraining  order  to 
issue  enjoining  the  defendants,  and  each  of  them,  and  each  of 
their  officers,  agents  and  servants,  as  hereinbefore  prayed. 

JOHN  B.  YREELAND, 

District  Attorney  of  the  United  States 

for  the  District  of  New  Jersey . 

GEORGE  W.  WICKERSHAM, 

Attorney- General  of  the  United  States. 

J.  M.  DICKINSON, 

Special  Assistant  to  the  Attorney - 

General  of  the  United  States. 


70 


Exhibit  A. 

AGREEMENT  “A.” 

This  Agreement,  made  and  entered  into  this  ninth  day  of  November, 
1900,  by  and  between  : 

Carnegie  Steel  Company. 

Jones  &  Laughlins,  Limited. 

Illinois  Steel  Company. 

Crucible  Steel  Company. 

Otis  Steel  Company. 

Tidewater  Steel  Company. 

Lukens  Iron  &  Steel  Company. 

Worth  Bros.  Company. 

Central  Iron  &  Steel  Company. 

The  American  Steel  &  Wire  Company. 

The  Glasgow  Iron  Company. 

Witnesseth:  That  the  above  said  parties  have  mutually  agreed  to 
and  with  each  other  to  form  an  Association  for  mutual  interests,  and  to 
enable  them  to  pay  liberal  wages  to  their  workmen,  to  be  known  as  The 
Steel  Plate  Association  of  the  United  States. 

First  :  Each  of  the  parties  above  named  being  manufacturers  and 
sellers  of  steel  plates,  shall  by  reason  of  such  manufacture  and  sale,  be 
entitled  to  membership  in  this  Association,  and  each  of  the  parties 
hereto  shall  be  entitled  to  portion  of  all  shipments  in  the  following  pro¬ 


portions: 

Carnegie  Steel  Company . . .  46.25 

Jones  &  Laughlins,  Limited . 4.75 

Illinois  Steel  Company .  11.00 

Crucible  Steel  Company  of  America .  4.50 

Otis  Steel  Company .  2.50 

Tidewater  Steel  Company .  3.00 

Lukens  Iron  &  Steel  Company .  7.50 

Worth  Bros.  Company .  7.00 

Central  Iron  &  Steel  Company . . .  8.00 

American  Steel  &  Wire  Company .  5.50 


Glasgow  Iron  Company  to  the  extent  of  sales  and 
output  up  to  40,000  tons,  should  they  be  able  to 
accomplish  them,  prior  to  December  31st,  1901. 

Second  :  The  officers  of  this  Association  shall  be  as  follows  :  a  Presi¬ 
dent,  a  Treasurer,  a  Commissioner  and  an  Executive  Committee  consisting 
of  six  members,  including  the  President.  The  conclusions  of  all  the 
Executive  Committee  meetings  shall  be  at  once  communicated  to  all 
members  of  this  Association. 

Third  :  Each  member  of  this  Association  shall,  on  or  before  the  tenth 
day  of  December,  1900,  and  on  or  before  the  tenth  day  of  every  month 


71 


thereafter  during  the  term  of  this  Agreement,  or  any  extension  thereof, 
render  to  the  Commissioner  of  this  Association,  a  statement,  which  state¬ 
ment  shall  be  sworn  to,  or  affirmed  to,  by  one  of  the  principal  Executive 
officers  of  the  member  so  making  the  report,  or  in  case  the  member  so 
making  the  report  is  a  co-partnership,  then,  in  that  case,  the  report  shall 
be  sworn  to,  or  affirmed  to,  by  one  of  the  firm  holding  membership  in 
this  Association,  which  oath  or  affirmation  shall  be  to  the  effect  that  the 
report  so  made,  is  a  true  and  correct  report  of  all  the  material  described 
in  the  First  Clause  of  this  Agreement,  which  was  shipped  by  the  member 
making  the  report  during  the  month  for  which  the  report  is  made ;  the 
form  of  the  report,  and  oath  of  affirmation  as  to  its  correctness,  shall  be 
furnished  by  the  Commissioner,  and  shall  include  a  statement  of  the 
rolling  production  for  each  month ;  and  upon  the  Commissioner’s  receiv¬ 
ing  from  the  respective  members  their  reports,  as  aforesaid,  he  the  Com¬ 
missioner,  shall  render  to  each  member  monthly,  as  soon  as  possible  after 
the  receipt  of  all  the  statements  of  all  the  members,  copies  of  statements 
last  rendered  by  each  member,  and  shall  forthwith  “  State  an  Account,” 
charging  each  member,  who  has  shipped  during  the  month  more  than  its 
or  their  percentage  of  the  total  amount  shipped  by  all  the  members  of  the 
Association,  the  sum  of  Thirty-five  hundredths  of  a  cent  (.35c)  per  pound 
on  each  and  every  pound  of  such  excess,  and  crediting  each  member  who 
has  not  shipped  its  or  their  percentage  of  the  total  amount  shipped  by  all 
members  of  the  Association,  with  the  sum  of  thirty-five  hundredths  of  a  cent 
(.35c)  per  pound  on  each  and  every  pound  with  which  it  or  they  fail  to  ship 
during  the  month  for  which  the  reports  are  made,  as  aforesaid,  and  as  a  basis 
of  calculation  making  such  “  Statement  of  Account,”  the  Commissioner  shall 
use  the  table  of  percentages  as  set  forth  in  the  First  Clause  of  this  Agree¬ 
ment  ;  and  upon  the  Statement  of  any  such  account  by  the  Commissioner, 
he  shall  immediately  mail  a  copy  thereof  to  each  member  of  this  Asso¬ 
ciation,  and  within  five  days  after  the  receipt  of  any  account  by  the 
member  of  this  Association,  which  account  shall  show  that  the  member 
receiving  the  same  is  indebted  to  the  Association,  the  member  so  receiving 
its  or  their  account,  showing  its  or  their  indebtedness,  shall  forward  to  the 
Treasurer  a  check  or  sight  draft  drawn  to  the  order  of  T.  Mellon  &  Sons, 
in  payment  of  such  indebtedness  which  check  or  sight  draft  the  Treasurer 
shall  deposit  in  the  said  Mellon  &  Sons’  Bank,  Pittsburg,  Pa.,  to  the 
credit  of  this  Association,  and  to  remain  to  the  credit  of  the  member  pay¬ 
ing  on  excess  of  shipments  and  being  increased  or  diminished  as  each 
month’s  business  shows.  It  shall  be  the  right  and  privilege  of  each  mem¬ 
ber,  who  shall  not  have  shipped  his  full  percentage,  to  call,  through  the 
Commissioner  on  members  who  have  made  an  excess,  to  transfer  to  the 
short  member  a  sufficient  amount  of  tonnage,  or  otherwise  enable  him  to 
fill  up  his  order  book.  It  being  the  intent  of  this  Agreement  that  each 


72 


member  shall  ship  his  entire  percentage,  and  at  the  end  of  each  year  it 
shall  be  the  duty  of  the  Commissioner  to  so  arrange  between  the  mem¬ 
bers  as  to  have  the  pool  balanced ;  but  any  member  unable,  at  the  end  of 
each  year,  to  produce  his  allotment,  after  first  deducting  his  exempted 
tonnage ;  which  shall  be  divided  among  other  members  of  the  pool,  in 
proportion  to  their  respective  tonnage  allotments. 

Fourth:  To  insure  the  rendering  of  the  statements  and  the  faithful 
adherence  of  each  party  to  the  terms  of  this  Agreement,  a  guarantee  fund 
of  $100,000  shall  be  formed  by  the  payment  on  or  before  December  3rd, 
1900,  of  $1,000  for  each  per  cent,  of  allotment,  as  provided  for  in  the 
First  Clause  of  this  Agreement  to  the  Treasurer,  which  fund  shall  be 
deposited  or  invested  as  directed  by  the  Executive  Committee  in  trust  for 
the  members,  in  the  same  proportion  as  received.  Subject  however,  to 
such  forfeiture  or  penalty  as  may  be  declared  by  a  vote  of  the  remainder 
of  the  members  against  any  member  violating  the  terms  of  this  Agree¬ 
ment,  as  hereinafter  provided. 

Fifth:  Whereas,  it  has  been  agreed  by  and  between  all  the  members 
of  this  Association  to  exempt  certain  tonnage  to  cover  orders  already 
taken,  it  is  agreed  that  such  exemption  shall  be  as  follows : 


Carnegie  Steel  Company .  140,000  tons. 

Jones  &  Laughlins,  Limited  .  9,400  “ 

Illinois  Steel  Company .  15,394  “ 

Crucible  Steel  Company  of  America.. .  2,687  “ 

Otis  Steel  Company. .  1,740  “ 

Tidewater  Steel  Company .  2,520  “ 

Lukens  Iron  &  Steel  Company .  5,778  “ 

Worth  Bros.  Company .  3,863  “ 

The  American  Steel  &  Wire  Company .  15,116  “ 

Glasgow  Iron  Company .  .  7,965  “ 


It  is  understood  that  those  who  hold  exemptions  under  this  agreement 
are  to  proportion  the  shipments  applying  to  them  in  monthly  allotments, 
between  the  date  of  this  Agreement  and  January  1st,  1902,  and  such 
shipments  shall  not  be  subject  to  the  pool  assessment. 

Sixth  :  It  is  required  that  all  plates  shipped  into  the  states  bordering 
on  the  Pacific  Coast,  and  to  be  actually  used  in  the  territory  into  which 
it  is  shipped,  and  also  all  plates  actually  exported  for  use  outside  the 
limits  of  the  United  States,  be  reported  to  the  Commissioner,  together 
with  Bills  of  Lading,  or  other  evidence  of  exportation,  for  actual  use 
abroad,  satisfactory  to  him  (said  evidence  to  be  confidential  and  not  to  be 
circulated  among  the  members.)  Such  tonnage  will  be  deducted  from 
the  member’s  report,  and  the  agreed  pool  tax  charged  on  the  balance. 

Seventh  :  Upon  receiving  the  written  request  of  two  members  of  the 
Association,  stating  the  object,  the  Commissioner  shall,  upon  the  approval 
of  the  Executive  Committee,  call  a  meeting  of  the  parties  to  this  agree- 


73 


ment,  to  be  held  from  five  days  from  date  of  his  receiving  such  written 
request. 

Eighth  :  If  at  any  time  any  of  the  parties  hereto  shall  have  reason  to 
suppose  that  any  other  party  or  parties  to  the  Agreement  have  violated 
any  of  the  provisions  of  this  Agreement,  the  said  party  so  supposing  the 
Agreement  has  been  violated,  shall  file  with  the  Commissioner  of  the  As¬ 
sociation,  a  Bill  of  Complaint  against  the  party  or  parties  so  suspected  of 
such  violation,  which  Bill  of  Complaint  shall  fully  set  forth  the  act  or  acts 
complained  of,  together  with  all  the  matters  or  things  connected  there¬ 
with  ;  the  said  Bill  of  Complaint  shall  be  in  writing,  and  shall  furnish  all 
the  evidence  that  can  be  submitted  in  connection  with  the  alleged  viola¬ 
tion,  and  upon  receipt  by  the  commissioner  of  any  and  all  Bills  of  Com¬ 
plaint,  as  aforesaid,  he  shall  forthwith  use  his  best  offices  to  have  the  ac¬ 
cuser  and  accused  arrive  at  an  amicable  settlement,  failing  in  which, 
he  shall  then  submit  all  the  information  he  may  have  to  the  Executive 
Committee  for  action  ;  if  the  said  Executive  Committee  shall  determine 
that  the  charges  have  been  sustained  they,  the  Executive  Committe,  shall 
impose  a  penalty  of  not  less  that  One  Thouand  Dollars,  nor  more  than 
the  amount  standing  to  the  credit  of  the  member,  so  punished,  in  the 
Guarantee  Fund  at  the  time  the  fine  is  imposed  upon  the  party  so  ad¬ 
judged  as  having  violated  the  Agreement,  but,  if  the  Executive  Commit¬ 
tee  shall  determine  that  the  charges  have  not  been  sustained,  they  shall 
dismiss  the  complaint  from  further  consideration  by  them.  It  is  further 
understood  and  agreed  that  no  member  of  the  Executive  Committee  shall 
act  upon  any  Bill  of  Complaint  made  by,  or  made  against  the  member  of 
the  Association  which  he  represents  nor  shall  any  representative  of  a 
member  of  the  Association  vote  upon  any  Bill  of  Complaint  brought  by 
or  brought  against  the  member  of  the  Association  he  represents.  Any 
penalty  imposed  by  the  Executive  Committee  will  be  collected  by  the 
Treasurer,  deducting  the  amount  therefrom  the  deposit  made  by  the  mem¬ 
ber,  against  whom  the  penalty  is  imposed,  to  the  Guarantee  Fund,  as 
provided  for  in  Clause  Fourth  of  this  Agreement,  within  two  weeks  after 
such  penalty  is  thus  imposed,  the  sum  thereof  shall  be  transferred  pro  rata 
as  per  allotments  to  the  accounts  of  the  members  of  the  Association  ex¬ 
cluding  the  member  against  whom  the  penalty  is  imposed,  by  the  Treas¬ 
urer  of  the  Association,  in  which  case  the  member  so  punished  shall  im- 
medintely  remit  an  amount  sufficient  to  make  good  the  sum  taken  from  the 
Guarantee  Fund. 

In  case  the  offending  member  shall  appeal  to  the  Association  and  the 
action  of  the  Executive  Committee  shall  not  be  sustained  by  a  majority 
vote  of  the  members  of  the  said  Association,  then  the  fine  imposed  shall 
be  remitted,  and  any  sum  that  the  member  may  have  paid  into  the  Asso- 
sociation,  by  reason  of  this  shall  be  returned. 


74' 


Ninth:  No  consideration,  in  the  nature  of  brokerage  or  commission, 
shall  be  paid  to  any  one  on  sales  of  plates,  on  or  after  January  1st,  1901. 

All  sales  between  parties  to  this  Agreement  shall  be  at  pool  prices,  as 
provided  in  Agreement  “  B,”  and  all  shipments  shall  be  reported  by  the 
manufacturer,  on  which  the  pool  tax  will  be  charged  the  same  as  to  out¬ 
side  parties,  the  purchaser  also  to  report  shipments  of  all  such  materials 
so  bought,  for  which  they  shall  claim  and  receive  credit. 

Tenth  :  At  any  meeting  of  the  members  of  this  Association,  called 
by  the  Commissioner,  as  herein  provided,  any  party,  or  parties  may  give 
three  months  notice  of  withdrawal  herefrom  but  no  such  notice  shall  take 
effect  prior  to  January  1st,  1902.  Statements  shall  continue  to  be  ren¬ 
dered  of  all  plates  shipped  up  to  date  of  such  withdrawal,  the  pool  assess¬ 
ment  to  be  charged  thereon. 

Eleventh  :  In  case  other  firms  or  corporations  are  admitted  as  part¬ 
ners  to  this  Agreement,  the  percentage  of  the  pool  alloted  to  each  shall 
be  deducted  pro  rata  from  the  percentages  of  the  members  immediately 
prior  to  the  time  of  its  admission;  and  in  case  any  of  the  parties  hereto, 
or  any  of  the  parties  hereafter  admitted  shall  withdraw,  the  percentage  of 
the  pool  alloted  to  such  withdrawing  party  or  parties  shall  be  added  pro 
rata  to  the  percentages  of  the  parties  remaining.  In  such  case,  the  Com¬ 
missioner  shall  compute  and  report  the  new  postages  to  the  nearest  one 
hundredth  of  one  per  cent.,  which  degree  of  accuracy  shall  be  deemed 
sufficient. 

Twelfth  :  The  Agreement  herein  made  of  percentages,  the  amount 
of  the  Guarantee  Fund  as  herein  provided,  and  the  Agreement  to  main¬ 
tain  minimum  fixed  rates  as  covered  in  Agreement  “B”,  shall  not  be 
altered,  amended  or  changed  in  any  respect,  except  by  the  unanimous 
consent  of  all  parties  to  this  agreement. 

Thirteenth  :  To  provide  for  the  prompt  payment  of  all  salaries,  rents 
and  other  expenses,  a  general  expense  fund  shall  be  called  in  as  needed, 
by  the  Treasurer,  in  proportion  to  the  percentage  alloted  each  member  of 
the  Association. 

Fourteenth  :  No  matter  of  account,  or  understanding  outside  of  this 
Agreement,  shall  affect  the  settlements  herein  provided  for;  either  as  an 
offset  or  otherwise,  nor  shall  any  written  or  unwritten  agreement  of  the 
parties  hereto,  or  any  of  them  establish  and  maintain  uniformity  prices, 
or  controversy  arising  out  of  any  such  agreement  or  any  failure  to  carry 
out  any  of  its  provisions  or  to  maintain  prices,  affect  in  any  way  the 
rendering  of  the  statements  and  the  making  of  the  settlements  herein  re¬ 
quired. 

Fifteenth  :  Whenever  this  Agreement  shall  have  been  terminated 
the  balance  of  the  deposit,  with  accumulated  interest,  remaining  in  the 
hands  of  the  Treasurer  to  the  credit  of  each  party,  after  provision  shall 


75 


have  been  made  for  the  payment  of  all  expenses,  shall  he  returned  to  it, 
provided  it  shall  have  rendered  all  the  statements  required  from  it  under 
this  Agreement,  and  have  paid  all  its  debtor  balances.  In  case  any 
party  hereto  shall  not  have  fulfilled  its  money  obligations  under  this 
agreement,  the  amount  it  has  on  deposit  in  the  Guarantee  Fund  shall  be 
applied  towards  the  fulfillment  of  those  obligations,  and  the  excess,  if  any, 
returned  to  it.  But  in  case  any  party  shall  not  have  fulfilled  its  agree¬ 
ment,  the  amount  it  has  on  deposit  on  the  Guarantee  F und,  or  the  excess 
thereof,  as  above  stated,  shall  be  divided  among  the  parties  who  shall 
have  fulfilled  their  obligations  under  this  agreement  in  the  proportion  of 
their  respective  percentages. 

Sixteenth  :  For  all  purpose  of  this  contract,  a  ton  shall  be  taken  and 
held  as  Two  Thousand  Pounds,  (2,000). 

In  witness  whereof  the  above  parties  have  signed  this  Agreement 
the  day  and  year  first  above  written. 


76 


Exhibit  B. 

AGREEMENT  “A.” 

This  agreement,  made  and  entered  into  this  1st  day  of  January,  1897, 
by  and  between  the  Passaic  Rolling  Mill  Co.,  Pottsville  Iron  &  Steel 
Co.,  A.  &  P.  Roberts  Co.,  Cambria  Iron  Co.,  Phoenix  Iron  Co.,  New 
Jersey  Steel  &  Iron  Co.,  Universal  Construction  Co.,  the  Carnegie  Steel 
Co.  (Ltd.),  Cleveland  Rolling  Mill  Co.,  Jones  &  Laughlin  Steel  Co. 
(Ltd.), 

Witnesseth  that  the  above  said  parties  have  mutually  agreed  to  and 
with  each  other  to  form  an  association  to  be  known  as  the  Structural 
Steel  Association  of  the  United  States. 

First.  Each  of  the  above  parties  named,  being  manufacturers  and 
sellers  of  steel  I  beams  and  channels  of  sizes  not  less  than  3  inches  in  depth, 
shall,  by  reason  of  such  manufacture  and  sale,  be  entitled  to  membership 
in  this  association,  and  each  of  the  parties  hereto  shall  be  entitled  to 
such  portion  of  all  sales  by  parties  hereto  of  I  beams  and  channels  of 
sizes  not  less  than  3  inches  in  depth  (except  I  beams  and  channels  for 
use  in  car  construction  and  deck  or  bulb  beams)  as  is  allotted  to  it  under 
the  following  table : 


A  Cl  CCU  l'. 

The  Carnegie  Steel  Co.  (Ltd.) .  491 

Jones  &  Laughlin  (Ltd.)..  .  . .  121 

A.  &  P.  Roberts  Co .  Ill 

Passaic  Rolling  Mill  Co .  6 

Phoenix  Iron  Co . .  5 

Cambria  Iron  Co . . . .  5 

Universal  Construction  Co .  41 

Pottsville  Iron  &  Steel  Co .  3 

Cleveland  Rolling  Mill  Co .  .  3 


100 

It  being  understood  that  members  of  this  association  having  bridge 
works  wherein  beams  and  channels,  as  covered  by  this  agreement,  are 
consumed  shall  report  to  this  association  all  shipments  to  such  depart¬ 
ments  and  pay  the  agreed  pool  tax  as  hereinafter  provided  on  shipments 
so  made  (except  such  as  are  used  in  the  construction  of  buildings  for 
their  own  respective  works  which  tonnage  shall  be  reported  and  credit 
given  therefor). 

Second.  The  officers  of  this  association  shall  be  as  follows :  A  president, 
a  treasurer,  a  commissioner  and  an  executive  committee,  consisting  of 


77 


three  members  (the  president  being  a  member  of  the  executive  committee, 
ex  officio). 

Third.  Each  member  of  this  association  (the  New  Jersey  Steel  &  Iron 
Co.  excepted),  shall,  on  or  before  the  10th  day  of  February,  1897,  and  on 
and  before  the  10th  day  of  each  and  every  month  thereafter,  during  the 
terms  of  this  agreement,  or  any  extension  thereof,  render  to  the  commis¬ 
sioner  of  this  association,  a  statement,  which  statement  shall  be  sworn  to 
or  affirmed  to  by  one  of  the  principal  executive  officers  of  the  member  so 
making  the  report,  or  in  case  the  member  so  making  the  report  is  a 
copartnership,  then,  in  that  case,  the  report  shall  be  sworn  to  or  affirmed 
to  by  one  of  the  firm  holding  membership  in  this  association  which 
oath  or  affirmation  shall  be  to  the  effect  that  the  report  so  made, 
is  a  true  and  correct  report  of  all  the  material  described  in  the 
first  clause  of  this  agreement  which  was  shipped  by  the  member  making 
the  report  during  the  month  for  which  the  report  is  made ;  the  form  of 
the  report  and  oath  or  affirmation  as  to  its  correctness,  shall  be  furnished 
by  the  commissioner.  And  upon  the  commissioner’s  receiving  from  the 
respective  members  their  reports,  as  aforesaid,  he,  the  commissioner,  shall 
render  to  each  member  monthly,  as  soon  as  possible  after  the  receipt  of 
all  the  statements  of  all  the  members,  copies  of  statements  last  rendered 
by  each  member,  and  shall  forthwith  “  state  an  account,”  charging  each 
member,  who  has  shipped  during  the  month  more  than  its  or  their  per¬ 
centage  of  the  total  amount  shipped  by  all  the  members  of  the  association, 
the  sum  of  five-tenths  cents  per  pound  on  each  and  every  pound  of  such 
excess  and  crediting  each  member  who  has  not  shipped  its  or  their  per¬ 
centage  of  the  total  amount  shipped  by  all  the  members  of  the  association 
with  the  sum  of  five-tenths  cents  per  pound  on  each  and  every  pound 
which  it  or  they  fail  to  ship  during  the  month  for  which  the  reports  are 
made,  as  aforesaid,  and  as  a  basis  of  calculation  in  making  such  “  state¬ 
ment  of  account,”  the  commissioner  shall  use  the  table  of  percentages  as 
set  forth  in  the  first  clause  of  this  agreement. 

And  upon  the  statement  of  such  account  by  the  commissioner,  he  shall 
immediately  mail  a  copy  thereof  to  each  member  of  this  association  and 
within  five  days  after  the  receipt  of  any  account  by  the  member  of  this 
association,  which  account  shall  show  that  the  member  receiving  the  same 
is  indebted  to  the  association,  the  member  so  receiving  its  or  their  account 
showing  its  or  their  indebtedness,  shall  forward  to  the  treasurer  a  check 
or  sight  draft  drawn  to  the  order  of  T.  Mellon  &  Sons,  in  payment  of 
such  indebtedness,  which  check  or  sight  draft  the  treasurer  shall  deposit 
in  the  said  T.  Mellon  &  Sons’  bank  to  the  credit  of  this  association,  and 
immediately  upon  the  treasurer  receiving  from  the  members  all  their  re¬ 
spective  remittances,  in  payment  of  their  indebtedness  to  the  association, 
for  any  month,  he,  the  treasurer,  shall  notify  the  respective  members 


78 


whom  the  aforesaid  “  account  stated  ”  shall  show  to  he  creditors  of  the 
association  for  any  month,  to  draw  on  him  (the  treasurer)  for  the  amount 
due  to  them  as  shown  by  said  “  account  stated,”  and  upon  receipt  of  their 
several  drafts  so  made  the  treasurer  shall  accept  the  same  payment  at  T, 
Mellon  &  Sons’,  and  charge  the  amounts  thereof  to  the  fund  created  by 
the  payments  made  by  the  members  who  shipped  in  excess  of  their  pro¬ 
portion  during  the  month  for  which  the  “account  stated”  was  made, 
thus  closing  that  account  each  month. 

Fourth.  To  insure  the  rendering  of  the  statements  and  the  settlement 
of  the  balances  due  between  the  members  of  this  association,  at  the  time 
required  by  the  provisions  of  this  agreement,  each  member  (the  New 
Jersey  Steel  &  Iron  Co.  excepted)  shall,  immediately  after  the  signing  of 
this  agreement,  remit  to  the  treasurer  its  or  their  check  or  sight  draft  for 
the  sum  of  $2,500,  and  shall,  on  or  before  the  10th  day  of  each  month 
thereafter,  remit  its  or  their  check  or  sight  draft  for  $500,  the  said  checks 
or  sight  drafts  shall  be  made  in  favor  of  T.  Mellon  &  Sons,  who  shall 
become  the  depository  of  all  the  proceeds  of  such  checks  or  sight  drafts, 
which  shall  form  a  guaranty  fund  and  be  held  by  said  T.  Mellon  &  Sons 
during  the  continuance  of  this  agreement,  or  any  extension  thereof,  and 
disposed  of  finally  as  hereinafter  provided. 

It  being  understood  that  when  the  said  guaranty  fund  reaches  the  sum 
total  of  $45,000,  that  the  payments  toward  said  fund  shall  thereupon 
cease. 

Fifth.  Whereas  it  has  been  agreed  by  and  between  the  several  other 
members  and  the  New  Jersey  Steel  &  Iron  Co.  that  the  works  of  the 
said  New  Jersey  Steel  &  Iron  Co.  shall  remain  inoperative  in  the  manu¬ 
facture  of  I  beams  and  channels,  of  sizes  coming  under  the  provision  of 
and  during  the  life  of  this  agreement,  in  consideration  of  which  the  New 
Jersey  Iron  and  Steel  Co.  shall  receive  from  this  association  the  sum  of 
$5,000  per  month.  Said  sum  of  $5,000  to  be  paid  by  the  several  other 
members  in  proportion  to  their  allotments  as  shown  by  the  table  in  the 
first  clause  of  this  agreement.  On  the  tenth  day  of  each  month  the  treas¬ 
urer  shall  draw  at  sight  on  the  respective  parties  to  this  agreement  for 
the  proportionate  amount  of  the  indebtedness,  and  when  all  such  drafts 
shall  have  been  paid,  he  shall  immediately  notify  the  New  Jersey  Steel 
&  Iron  Co.  to  draw  upon  him  at  sight  for  the  sum  of  $5,000,  thus  closing 
this  account  each  month.  In  case  any  draft  which  the  treasurer  shall 
make,  as  in  this  clause  provided,  shall  not  be  promptly  paid,  the  amount 
of  such  draft  shall  be  taken  from  the  deposition  the  guarantee  fund  of  the 
party  failing  to  pay  such  draft,  and  payment  made  to  the  New  Jersey 
Steel  &  Iron  Co.,  the  same  as  if  all  such  drafts  of  the  treasurer  has  been 
paid,  and  such  party  shall  immediately  remit  to  the  treasurer  an  amount 
sufficient  to  make  good  the  sum  so  taken  from  the  guarantee  fund. 


79 


Sixth.  Whereas  it  has  been  agreed  by  and  between  all  the  members  of 
this  association  (the  New  Jersey  Steel  &  Iron  Co.  excepted)  to  exempt 
all  members  except  the  Phoenix  Iron  Co.,  to  the  extent  of  5  per  cent  of 
300,000  tons,  in  the  proportions  expressed  in  the  table  of  allotments  con¬ 
tained  in  clause  1  of  this  agreement ;  the  aforesaid  Pheonix  Iron  Co.  to 
be  exempted  to  the  amount  of  11,000  tons;  the  pool  assessment  shall  not 
be  charged  on  any  member’s  shipments  until  it  or  they  shall  have  com¬ 
pleted  its  or  their  quoto  of  exempted  tonnage. 

Seventh.  It  is  required  that  all  I  beams  and  channels  shipped  into  the 
States  bordering  on  the  Pacific  coast  and  to  be  actually  used  in  the  terri¬ 
tory  into  which  it  is  shipped  and  also  all  I  beams  and  channels  actually 
exported  for  use  outside  the  limits  of  the  United  States  be  reported  to 
the  commissioner  together  with  bills  of  lading  or  other  evidence  of  ex¬ 
portation  satisfactory  to  him  (said  evidence  to  be  confidential  and  not  to 
be  circulated  among  the  members).  Such  tonnage  will  be  deducted  from 
the  member’s  report  and  the  agreed  pool  tax  charged  on  the  balance. 

Eighth.  Upon  receiving  the  written  request  of  any  one  member  of  the 
association  the  commissioner  shall  call  a  meeting  of  the  parties  to  this 
agreement,  to  be  held  within  five  days  from  the  date  of  his  receiving  such 
written  request. 

Ninth.  If  at  any  time  any  of  the  parties  hereto  shall  have  reason  to 
suppose  that  any  other  party  or  parties  to  the  agreement  have  violated 
any  of  the  provisions  of  this  agreement,  the  said  party  so  supposing  the 
agreement  has  been  violated  shall  file  with  the  commissioner  of  the  asso¬ 
ciation  a  bill  of  complaint  against  the  party  or  parties  so  suspected  of 
such  violation,  which  bill  of  complaint  shall  fully  set  forth  the  act  or 
acts  complained  of,  together  with  all  the  matters  or  things  connected 
therewith.  The  said  bill  of  complaint  shall  be  in  writing  and  shall  fur¬ 
nish  all  the  evidence  that  can  be  submitted  in  connection  with  the  alleged 
violation,  and  upon  receipt  by  the  commissioner  of  any  and  all  bills  of 
complaint  as  aforesaid,  he  shall  forthwith  use  his  best  offices  to  have  the 
accuser  and  accused  arrive  at  an  amicable  settlement,  failing  in  which,  he 
shall  submit  all  the  information  he  may  have  to  the  executive  committee 
for  action.  If  the  said  executive  committee  shall  determine  that  the 
charges  have  been  sustained,  they,  the  executive  committee,  shall  impose 
a  penalty  not  less  than  $1,000,  nor  more  than  the  amount  standing  to  the 
credit  of  the  member  so  punished  in  the  guaranty  fund  at  the  time  the 
fine  is  imposed  upon  the  party  so  adjudged  as  having  violated  the  agree¬ 
ment,  but  if  the  executive  committee  shall  determine  that  the  charges 
have  not  been  sustained  they  shall  dismiss  the  complaint  from  further 
consideration  by  them.  It  being  further  understood  and  agreed  that  no 
member  of  the  executive  committee  shall  act  upon  any  bill  of  complaint 
made  by  or  made  against  the  member  of  the  association  which  he  repre- 


80 


sents,  nor  shall  any  representative  of  a  member  of  the  association  vote 
upon  any  bil^of  complaint  brought  by  or  brought  against  the  member  of 
the  association  which  he  represents.  Any  penalty  imposed  by  the  execu¬ 
tive  committee  will  be  collected  by  the  treasurer,  deducting  the  amount 
thereof  from  the  deposit  made  by  the  member  against  whom  the  penalty 
is  imposed  to  the  guaranty  fund,  as  provided  for  in  clause  fourth  of  this 
agreement,  within  two  weeks  after  such  penalty  is  thus  imposed,  the  sum 
thereof  shall  be  transferred  pro  rata  as  per  allotments  to  the  accounts  of 
the  members  of  the  association,  excluding  the  member  against  whom  the 
penalty  is  imposed,  by  the  treasurer  of  the  association,  in  which  case  the 
member  so  punished  shall  immediately  remit  an  amount  sufficient  to 
make  good  the  sum  taken  from  the  guaranty  fund. 

In  case  the  offending  member  should  appeal  to  the  association  and  the 
action  of  the  executive  committee  should  not  be  sustained  by  a  majority 
vote  of  said  association,  then  the  fine  imposed  shall  be  remitted  and  any 
sum  that  the  member  may  have  paid  into  the  association  by  reason  of 
this  shall  be  returned. 

Tenth.  No  member  of  this  association  (the  New  Jersey  Steel  &  Iron 
Co.  excepted)  shall  make  any  lump-sum  bid,  nor  shall  they  or  it  erect 
any  building,  directly  or  indirectly.  This  applies  only  to  members  as 
“  Rolling  Mills.”  Any  question  arising  as  to  the  interpretation  of  this 
clause  shall  be  referred  to  the  commissioner  for  his  immediate  decision. 

Eleventh.  No  consideration  in  the  nature  of  brokerage  or  commission 
is  to  be  allowed,  except  to  the  accredited  agents  of  the  parties  to  this 
agreement,  whose  names  shall  be  on  file  with  the  commissioner ;  and  in 
no  case  will  it  be  permissible  for  such  commission  to  be  divided. 

No  sales  or  contracts  shall  be  made  to  or  with  middlemen  except  on 
specific  work  for  immediate  specifications. 

All  sales  between  parties  to  this  agreement  shall  be  at  pool  prices,  as 
provided  in  agreement  “  B,”  and  all  shipments  shall  be  reported  by  the 
manufacturer,  on  which  the  pool  tax  will  be  charged  the  same  as  to  out¬ 
side  parties,  the  purchaser  also  to  report  shipments  of  all  such  material  so 
bought,  for  which  they  shall  claim  and  receive  credit. 

Twelfth.  At  any  meeting  of  the  members  of  this  association,  called  by 
the  commissioner  as  herein  provided,  any  party  or  parties  may  give  notice 
of  withdrawal  herefrom,  but  no  such  notice  shall  take  effect  until  Janu¬ 
ary  1,  1898.  If  the  aggregate  pool  percentages  of  the  parties  giving  such 
notice  of  withdrawal  shall  amount  to  less  than  4  per  cent,  this  agreement 
shall  continue  in  force  as  between  the  remaining  parties,  but  if  such 
aggregate  shall  amount  to  4  per  cent  or  more  this  agreement  shall  termi¬ 
nate  at  the  time  so  fixed.  But  statements  shall  continue  to  be  rendered 
of  all  I  beams  and  channels  shipped  up  to  date  of  its  termination,  the 
pool  assessment. 


81 


Thirteenth.  The  percentages  of  the  parties  hereto  or  of  their  successors 
(including  as  such  any  concern  mainly  owned  or  controlled  by  any 
of  the  said  parties  or  any  of  their  stockholders),  shall  be  maintained  in 
the  same  relative  proportion  until  otherwise  agreed,  and  if  any  party 
shall  at  any  time  have  more  than  one  successor  or  allied  concern,  the 
aggregate  percentages  allotted  to  itself  and  all  its  successors  and  allied 
concerns  shall  not  exceed  the  percentage  that  the  original  concern  would 
have  been  entitled  to  if  it  had  continued  alone  its  relations  to  the  other 
parties  under  this  agreement,  and  the  parties  thereto  shall  include  in 
their  statement  the  shipments  for  such  successors  and  allied  concerns. 

Fourteenth.  In  case  other  firms  or  corporations  are  admitted  as  part¬ 
ners  to  this  agreement,  the  percentage  of  the  pool  allotted  to  each  shall 
be  deducted  pro  rata  from  the  percentages  of  the  members  immediately 
prior  to  the  time  of  its  admission ;  and  in  case  any  of  the  parties  hereto 
or  any  of  the  parties  hereafter  admitted  shall  withdraw,  the  percentage 
of  the  pool  allotted  to  such  withdrawing  party  or  parties  shall  be  added 
pro  rata  to  the  percentages  of  the  parties  remaining.  In  such  case  the 
commissioner  shall  compute  and  report  the  new  percentages  to  the  near¬ 
est  one-hundredth  of  one  per  cent,  which  degree  of  accuracy  shall  be 
deemed  sufficient. 

Fifteenth.  The  allotment  herein  made  of  percentages,  the  amount  of 
the  guaranty  fund,  and  the  payment  made  to  the  New  Jersey  Steel  & 
Iron  Co.,  as  herein  provided,  shall  not  be  altered,  amended,  or  changed 
in  any  respect,  except  by  the  unanimous  consent  of  all  the  parties  to  this 
agreement,  but  any  other  matters  or  things  whatsoever  which  concern 
this  agreement  or  the  association  formed  thereby  or  any  regulations  here¬ 
after  adopted,  may,  at  any  time,  be  abrogated  or  amended  or  altered  at 
any  meeting  of  the  members  of  this  association,  provided  that  two-thirds 
of  the  members  of  the  association  are  present  thereat,  that  they  represent 
at  least  two-thirds  of  the  percentage  allotted  to  all,  and  vote  in  favor 
thereof. 

Sixteenth.  To  provide  for  the  prompt  payment  of  all  salaries,  rents, 
and  other  expenses  (except  the  payment  which  is  to  be  made  monthly  to 
the  New  Jersey  Steel  &  Iron  Co.),  a  general  expense  fund  shall  be  called 
in  as  needed  by  the  treasurer  in  proportion  to  the  percentage  allotted 
each  member  in  the  association. 

Seventeenth.  No  matter  of  account  or  understanding  outside  of  this 
agreement  shall  affect  the  settlements  herein  provided  for,  either  as  an 
offset  or  otherwise,  nor  shall  any  written  or  unwritten  agreement  of  the 
parties  hereto,  or  any  of  them,  to  establish  and  maintain  uniformity  in 
prices,  or  any  controversy  arising  out  of  such  agreement,  or  any  failure  to 
carry  out  any  of  its  provisions,  or  to  maintain  prices,  affect  in  any  way 


82 


the  rendering  of  the  statements  and  the  making  of  the  settlements  therein 
required. 

Eighteenth.  Whenever  this  agreement  shall  have  been  terminated  the 
balance  of  the  deposit,  with  accumulated  interest,  remaining  in  the  hands 
of  the  treasurer  to  the  credit  of  each  party,  after  provision  shall  have 
been  made  for  the  payment  of  all  expenses,  shall  be  returned  to  it,  pro¬ 
vided  it  shall  have  rendered  all  the  statements  required  from  it  under 
this  agreement  and  have  paid  all  its  debtor  balances.  In  case  any  party 
hereto  shall  not  have  fulfilled  its  money  obligations  under  this  agreement, 
the  amount  it  has  on  deposit  in  the  guarantee  fund  shall  be  applied 
toward  the  fulfillment  of  those  obligations,  and  the  excess,  if  any,  returned 
to  it.  But  in  case  any  party  shall  not  have  fulfilled  its  agreement  to 
render  the  monthly  statements  under  this  agreement,  the  amount  it  has 
on  deposit  in  the  guarantee  fund,  or  the  excess  thereof,  as  above  stated, 
shall  be  divided  among  the  parties  who  shall  have  fulfilled  their  obliga¬ 
tions  under  this  agreement,  in  the  proportion  of  their  respective  percent¬ 
ages. 

Nineteenth.  At  the  expiration  of  this  agreement,  or  at  any  time  the 
president  of  the  association,  together  with  the  majority  of  the  executive 
committee,  determine  that  it  is  advisable  that  all  or  any  part  of  any 
funds  belonging  to  the  association  shall  be  withdrawn  from  the  deposi¬ 
tory  then  holding  the  same,  upon  notification  by  the  present  and  a  major¬ 
ity  of  the  executive  committee  of  such  determination  being  given  the 
treasurer,  he,  the  treasurer,  shall  make  and  sign  a  sight  draft  or  check 
upon  the  depository  so  holding  such  funds  for  the  sum  named  in  such 
notification,  which  check  or  sight  draft  shall  then  be  countersigned  by 
the  president  or  one  member  of  the  executive  committee,  and  when  such 
checks  or  sight  drafts  are  so  made  and  signed  by  the  treasurer  and  coun¬ 
tersigned  by  the  president  or  one  member  of  the  executive  committee  and 
duly  presented  for  payment  at  the  office  of  the  depository  holding  the 
funds  of  the  association,  all  such  checks  and  sight  drafts  shall  be  paid 
by  such  depository. 

Twentieth.  For  all  purposes  of  this  agreement  a  ton  shall  be  taken 
and  held  of  2,000  pounds. 

In  witness  whereof  the  parties  hereto  have  signed  this  agreement  the 
day  and  year  first  above  written. 


83 


Exhibit  C. 

OFFICERS  AND  DIRECTORS  OF  THE  U.  S.  S.  C. 

Chairman  of  Board  and  Chairman  of  Finance  Committe,  E.  H.  Gary. 

President,  W.  E.  Corey. 

1st  Vice  President,  W.  B.  Dickson. 

2nd  Vice  President,  David  G.  Kerr. 

Sec.  and  Treas.,  Richard  Trimble. 

Gen.  Counsel,  Francis  Lynde  Stetson. 

Asst.  Sec.,  Thomas  Murray. 

Ass’t.  Treas.,  H.  G.  Hay. 

Comptroller,  W.  J.  Filbert. 

Asst.  Comptroller,  Jos.  H.  Craig. 

directors: 

Term  Expires. 

Baker,  Geo.  F .  1911 

Clifford,  Alfred . . .  1910 

Converse,  E.  C . .  1910 

Corey,  W.  E . . .  1911 

Dryden,  Jno.  F .  1911 

Frick,  Henry  C .  1912 

Gary,  Elbert  H .  1910 

Griscom,  Clement  A . .  1911 

Mather,  Samuel  .  1911 

Moore,  William  H .  1912 

Morgan,  J.  P .  1910 

Morgan,  J.  P.,  Jr., .  1910 

Morrison,  Thos .  1910 

Perkins,  Geo.  W .  1910 

Phipps,  Henry .  . .  1910 

Ream,  Norman  B .  1912 

Reed,  James  H . ? .  1912 

Reid,  Daniel  G .  1911 

Roberts,  Persival,  Jr., .  1912 

Rockefeller,  John  D.,  Jr., .  1912 

Steele,  Chas .  1912 

Thayer,  Nathaniel .  .  1911 

Walters,  Henry .  1911 

Widener,  P.  A.  B. .  1912 

Winsor,  Robt .  .  1912 


84 


The  following  of  said  officers  and  directors  are  also  directors  of  the 
following  companies: 

BAKER,  GEORGE  F. 

Adams  Express  Co.,  The,  Member  of  Board  of  Managers. 

American  Telephone  &  Telegraph  Co.,  Dir. 

Astor  Trust  Co.,  Dir. 

Atlas  Portland  Cement  Co.,  The,  Dir. 

Bankers’  Safe  Deposit  Co.,  Y.  Pres,  and  Trustee. 

Bowery  Savings  Bank,  The,  Trustee. 

Car  Trust  Investment  Co.,  Limited,  London,  Dir. 

Central  R.  R.  Co.  of  N.  J.,  The,  Dir. 

Chase  National  Bank,  The,  Dir. 

Chicago,  Burlington  &  Quincy  R.  R.  Co.,  Dir. 

Cincinnati,  Hamilton  &  Dayton  Railway  Co.,  Dir. 

Colorado  &  Southern  Railway  Co.,  Dir. 

Consolidated  Gas  Co.  of  New  York,  Trustee. 

Continental  Insurance  Co.,  The,  Dir. 

Delaware,  Lackawanna  &  Western  R.  R.  Co.,  Member  of  Board  of 
Managers. 

East  Jersey  Water  Co.,  Dir. 

Erie  R.  R.  Co.,  Dir. 

Farmers’  Loan  &  Trust  Co.,  The,  Dir. 

First  National  Bank  of  Chicago,  Dir. 

First  National  Bank  of  N.  Y.,  Chairman  of  the  Board  of  Dirs. 

First  Security  Co.  of  the  City  of  N.  Y.,  Pres,  and  Dir. 

Guaranty  Trust  Co.  of  N.  Y.,  Dir. 

Industrial  Trust  Co.,  Providence,  Dir. 

International  Harvester  Co.,  Dir. 

Jersey  City  Water  Supply  Co.,  Y.  Pres,  and  Dir. 

Lake  Erie  &  Western  R.  R.  Co.,  The,  Dir. 

Lake  Shore  &  Michigan  Southern  Ry.  Co.,  The,  Dir. 

Lehigh  &  Wilkesbarre  Coal  Co.,  Dir. 

Lehigh  Yalley  Coal  Co.,  Dir. 

Lehigh  Valley  R.  R.  Co.,  Dir. 

Liberty  National  Bank,  The,  Dir. 

Manhattan  Trust  Co.,  Dir. 

Metropolitan  Opera  &  Real  Estate  Co.,  Pres,  and  Dir. 

Michigan  Central  R.  R.  Co.,  The,  Dir. 

Mohawk  &  Malone  Railway  Co.,  Dir. 

Montclair  Water  Co.,  The,  Dir. 

Morton  Trust  Co.,  Dir. 

Mutual  Life  Insurance  Co.,  of  N.  Y.,  The,  Trustee. 

National  Bank  of  Commerce  in  N.  Y.,  Dir. 

N.  J.  General  Security  Co.,  Pres,  and  Dir. 

N.  Y.  &  Harlem  R.  R.,  Dir. 

N.  Y.  &  Long  Branch  R.  R.  Co.,  Pres.  &  Dir. 

N.  Y.  &  Putnam  R.  R.  Co.,  Dir. 

N.  Y.  Central  &  Hudson  River  R.  R.  Co.,  Dir. 

N.  Y.  Chicago  &  St.  Louis  R.  R.  Co.,  Dir. 

N.  Y.  Clearing  House  Building  Co.,  Dir. 


85 


BAKER,  GEORGE  F.— Continued. 

N.  Y.  Mutual  Gas  Light  Co.,  The,  Dir. 

Newport  Trust  Co.,  Dir. 

Northern  Pacific  Railway  Co.,  Dir. 

Northern  Securities  Co.,  Second  Y.  Pres,  and  Dir. 
Pennsylvania  Coal  Co.,  Dir. 

Pere  Marquette  R.  R.  Co.,  Dir. 

Provident  Loan  Society  of  N.  Y.,  The,  Trustee. 
Pullman  Co.,  The,  Dir. 

Spring  Brook  Water  Supply  Co.,  Dir. 

U.  S.  Steel  Corporation,  Dir. 

West  Shore  R.  R.  Co.,  Dir. 

CONVERSE,  EDMUND  C. 

Allis-Chalmers  Co.,  Dir. 

American  Bank  Note  Co.,  Dir. 

American  Can  Co.,  Dir. 

Astor  Trust  Co.,  Pres,  and  Dir. 

Bankers’  Trust  Co.,  Pres,  and  Dir. 

Coronet  Phosphate  Co.,  Pres,  and  Dir. 

Fidelity  Fire  Insurance  Co.,  Dir. 

Fourth  Street  National  Bank,  Philadelphia,  Dir. 
Hudson  &  Manhattan  R.  R,  Co.,  Dir. 

International  Nickel  Co.,  Dir. 

International  Smelting  &  Refining  Co.,  Dir. 
Inter-Ocean  Steel  Co.,  Dir. 

Interstate  Investing  Co.,  Dir. 

Kewanee  Oil  &  Gas  Co.,  Dir. 

Liberty  National  Bank,  The,  Dir. 

Manning,  Maxwell  &  Moore,  Incorporated,  Dir. 
McKeesport  Connecting  R.  R.,  Dir. 

Mohican  Oil  &  Gas  Co.,  V.  Pres. 

National  Supply  Co.,  Toledo,  Dir. 

National  Tube  Co.  Dir. 

National  Tube  Works  Co.,  Dir. 

Phoenix  Insurance  Co.,  of  Brooklyn,  Dir. 

Sheffield  Coal  &  Iron  Co.,  Dir. 

Texas  &  Pacific  Coal  Co.,  Dir. 

Union  Trust' Co.,  Pittsburg,  Dir. 

United  Bank  Note  Corporation,  Pres,  and  Dir. 

U.  S.  Steel  Corporation,  Dir. 

West  Penn.  Railways,  Chairman  of  the  Board  of  Dirs. 
Westinghouse  Electric  &  Mfg.  Co.,  Dir. 

COREY,  WILLIAM  E. 

American  Mining  Co.,  Dir. 

American  Sheet  &  Tin  Plate  Co.,  Dir. 

American  Steel  &  Wire  Co.,  of  N.  J.,  Dir. 
Birmingham  Southern  Railway  Co.,  Dir. 

Carnegie,  Phipps  &  Co.,  Limited,  Dir. 

Carnegie  Steel  Co.,  Dir. 

Carnegie  Steel  Co.,  Limited,  The,  Dir. 


86 


COREY,  WILLIAM  E.— Continued. 

Carnegie  Steel  Co.,  of  Pennsylvania,  Dir. 

Clairton  Steel  Co.,  Dir. 

Chicago,  Lake  Shore  &  Eastern  Railway  Co.,  Dir. 

Connellsville  &  Monongahela  Railway  Co.,  Dir. 

Duluth  &  Iron  Range  Railroad  Co.,  Dir. 

Edgar  Zinc  Co.,  Dir. 

Elgin,  Joliet  &  Eastern  Railway  Co.,  Dir. 

Federal  Steel  Co..  Dir. 

Gary  Land  Co.,  Dir. 

H.  C.  Frick  Coke  Co.,  Dir. 

Illinois  Steel  Co.,  Dir. 

Minnesota  Steel  Co.,  Dir. 

Minnesota  Iron  Co.,  Dir. 

Mount  Pleasant  Water  Co.,  Dir. 

National  Tube  Co.,  Dir. 

National  Tube  Works  Co.,  Dir. 

Pittsburg  Steamship  Co.,  Dir. 

Sharon  Tin  Plate  Co.,  Dir. 

Shelby  Steel  Tube  Co.,  Dir. 

Tennessee  Coal,  Iron  &  R.  R.  Co.,  Dir. 

Trotter  Water  Co.,  Dir. 

Troy  Steel  Products  Export  Co.,  Dir. 

Union  Steel  Co.,  Dir. 

U.  S.  Coal  &  Coke  Co.,  Dir. 

U.  S.  Steel  Products  Export  Co.,  Dir. 

Youghiogheny  Northern  Railway  Co.,  Dir. 

DRYDEN,  JOHN  F.,  President  and  Director  of  the  Prudential  In¬ 
surance  Co.  of  America. 

Equitable  Trust  Co.  of  N.  Y.,  The,  Trustee. 

Fidelity  Trust  Co.,  Newark,  N.  J.,  V.-Pres.  and  Dir. 

Mercantile  Trust  Co.,  The,  Dir. 

National  Bank  of  Commerce  in  N.  Y.,  Dir. 

Public  Service  Corporation,  Dir. 

Union  National  Bank,  Newark,  N.  J.,  Dir. 

U.  S.  Casualty  Co.,  Dir. 

U.  S.  Steel  Corporation,  Dir. 

FRICK,  HENRY  C. 

Chicago  &  Northwestern  Railway  Co.,  Dir. 

City  Deposit  Bank,  Pittsburg,  Dir. 

Mellon  National  Bank,  Pittsburg,  Dir. 

National  Union  Fire  Insurance  Co.,  Pittsburg,  Dir. 

Pennsylvania  R.  R.  Co.,  The,  Dir. 

Philadelphia  &  Reading  Coal  &  Iron  Co.,  Dir. 

Philadelphia  &  Reading  Railway  Co.,  Dir. 

Reading  Co.,  Dir. 

Union  Insurance  Co.,  Pittsburg,  Dir. 

Union  Pacific  R.  R.  Co.,  Dir. 

Union  Trust  Co.  of  Pittsburg,  The,  Dir. 

U.  S.  Steel  Corporation,  Dir. 


87 


GARY,  ELBERT  H. 

ALLIS-CHALMERS  Co.,  Chairman  of  the  Board  of  Directors  and 
Member  of  Finance  Committee. 

American  Bridge  Co.,  Dir. 

American  Bridge  Co.  of  N.  Y.,  Dir. 

American  Sheet  and  Tin  Plate  Co.,  Dir. 

American  Steel  &  Wire  Co.,  of  N.  J.,  Dir. 

American  Steel  Foundries,  Dir. 

American  Trust  &  Savings  Bank,  Chicago,  Dir. 

Bessemer  &  Lake  Erie  R.  R.  Co.,  Dir. 

Bullock  Electric  Mfg.  Co.,  Dir. 

Carnegie  Steel  Co.,  Dir. 

Chicago,  Lake  Shore  &  Eastern  Railway  Co.,  Dir. 

Commercial  National  Bank  of  Chicago,  Dir. 

Duluth  &  Iron  Range  R.  R.  Co.,  Dir. 

Duluth,  Missabe  &  Northern  Railway  Co.,  Dir. 

Elgin,  Joliet  &  Eastern  Railway  Co.,  Dir. 

Empire  Bridge  Co.,  Dir. 

Federal  Steel  Co.,  Pres,  and  Dir. 

Gary-Wheaton  Bank,  Wheaton,  Ill.,  Pres,  and  Dir. 

H.  C.  Frick  Coke  Co.,  Dir. 

Hudson  &  Manhattan  R.  R.  Co.,  Dir. 

Illinois  Steel  Co.,  Dir. 

International  Harvester  Co.,  Dir. 

Lake  Superior  Consolidated  Iron  Mines,  Dir. 

Merchants  Loan  &  Trust  Co.,  Chicago,  Dir. 

Minnesota  Iron  Co.,  Dir. 

Minnesota  Steel  Co.,  Dir. 

National  Tube  Co.,  Dir. 

Newburg  &  South  Shore  Railway  Co.,  Dir. 

N.  Y.  Trust  Co.,  Member  of  Executive  Committee  and  Dir. 

Oliver  Iron  Mining  Co.,  Dir. 

Phoenix  National  Bank  of  the  City  of  N.  Y.,  The,  Dir. 

Pitthburgh,  Bessemer  &  Lake  Erie  R.  R.  Co.,  Dir. 

Pittsburgh  Steamship  Co.,  Dir. 

Southern  Railway  Co.,  Dir. 

Tennessee  Coal,  Iron  &  R.  R.  Co.,  Dir. 

Union  Steel  Co.,  Dir. 

U.  S.  Coal  &  Coke  Co.,  Dir. 

U.  S.  Natural  Gas  Co.,  Dir. 

U.  S.  Steel  Products  Export  Co.,  Dir. 

Universal  Portland  Cement  Co.,  Dir. 

GRISCOM,  CLEMENT  A.,  Jr.,  President  and  Director  of  the  Griscom- 
Spencer  Co. 

American  Finance  and  Securities  Co.,  The,  Dir. 

Bell  Pure  Air  &  Cooling  Co.,  Pres,  and  Dir. 

Development  Co.  of  America,  The,  Dir. 

El  Tiro  Copper  Co.,  Dir. 

Empire  Trust  Co.,  Dir. 

Guanajuato  Reduction  &  Mines  Co.,  The,  Y.  Pres,  and  Dir. 

N.  Y.  Real  Estate  Security  Co,,  Dir. 

Reilly  Heater  &  Evaporator  Co.,  Dir. 


88 


MOORE,  WILLIAM  H. 

American  Can  Co.,  Dir. 

Chicago  &  Eastern  Illinois  R.  R.  Co.,  Dir. 

Chicago,  Rock  Island  &  Pacific  R.  R.  Co.,  Dir. 

Chicago,  Rock  Island  &  Pacific  Railway  Co.,  Dir. 

Delaware,  Lackawanna  &  Western  Railway  Co.,  Dir. 
Evansville  &  Indianapolis  R.  R.,  Dir. 

Evansville  &  Terre  Haute  R.  R.  Co.,  Dir. 

Evansville  Belt  Railway  Co.,  Dir. 

Fidelity  Fire  Insurance  Co.,  Dir. 

First  National  Bank  of  N.  Y.,  Dir. 

First  Security  Co.  of  the  City  of  N.  Y.,  Dir. 

Kansas  City,  Fort  Scott  &  Memphis  Railway  Co.,  The,  Dir. 
Kansas  City,  Memphis  &  Birmingham  R.  R.  Co.,  Dir. 
Keokuk  &  Des  Moines  Railway  Co.,  Dir. 

National  Biscuit  Co.,  Dir. 

Peoria  &  Bureau  Valley  R.  R.  Co.,  Dir. 

Price  Flavoring  Extract  Co.,  Dir. 

Rock  Island  Co.,  The,  Dir. 

St.  Louis  &  San  Francisco  R.  R.  Co.,  Dir. 

U.  S.  Steel  Corporation,  Dir. 

MORGAN,  J.  PIERPONT. 

jEtna  Insurance  Co.,  Hartford,  Conn.,  Dir. 

Carthage  &  Adirondack  Railway  Co.,  Dir. 

Carthage,  Watertown  &  Sackets  Harbor  R.  R.  Co.,  Dir. 
Central  New  England  Railway  Co.,  Dir. 

Cleveland,  Cincinnati,  Chicago  &  St.  Louis  Railway  Co.,  Dir. 
Columbus,  Hope  &  Greensburg  R.  R.  Dir. 

Dunkirk,  Allegheny  Valley  &  Pittsburgh  R.  R.  Co.,  Dir. 
Ellenville  &  Kingston  R.  R.  Co.,  Dir. 

First  National  Bank  of  N.  Y.,  Dir. 

First  Security  Co.  of  the  City  of  N.  Y.,  Dir. 

Fort  Wayne,  Cincinnati  &  Louisville  R.  R.  Co.,  Dir. 

Fulton  Chain  Railway  Co.,  Dir. 

Fulton  Navigation  Co.,  Dir. 

General  Electric  Co.,  Dir. 

Harlem  River  &  Port  Chester  R.  R.,  Dir. 

Hartford  &  Connecticut  Western  R.  R.  Co.  Dir. 

Jersey  City  &  Bayonne  R.  R.  Co.,  Dir. 

Lake  Erie  &  Western  R.  R.  Co.,  Dir. 

Lake  Shore  &  Michigan  Southern  Railway  Co.,  The,  Dir. 
Mexican  Telegraph  Co.,  Dir. 

Michigan  Central  R.  R.  Co.,  The,  Dir. 

Mohawk  &  Malone  R.  R.  Co.,  Dir. 

National  Bank  of  Commerce  in  N.  Y.,  Dir. 

New  England  Navigation  Co.,  Dir. 

New  England  R.  R.  Co.,  Dir. 

N.  J.  Junction  R.  R.  Co.,  Dir. 

N.  J.  Shore  Line  R.  R.  Co.,  Dir. 

Newport  Trust  Co.,  Dir. 

N.  Y.  &  Harlem  R.  R.  Co.,  Dir. 


89 


MORGAN,  J.  PIERPONT— Continued. 

N.  Y.  &  Northern  Railway  Co.,  Dir. 

N.  Y.  &  Ottawa  Railway  Co.  Dir. 

N.  Y.  &  Putnam  R.  R.  Co.,  Dir. 

N.  Y.  Central  &  Hudson  River  R.  R.  Co.,  The,  Dir. 

N.  Y.,  Chicago  &  St.  Louis  R.  R.  Co.,  Dir. 

N.  Y.,  New  Haven  &  Hartford  R.  R.  Co.,  Dir. 

N.  Y.,  Ontario  &  Western  Railway  Co.,  Dir. 

N.  Y.,  State  Realty  &  Terminal  Co.,  Dir. 

Niagara  Falls  Branch  R.  R.  Co.,  Dir. 

Ontario,  Carbondale  &  Scranton  Railway  Co.,  Dir. 

Pittsburgh  &  Lake  Erie  R.  R.  Co.,  Dir. 

Port  Jervis,  Monticello  &  Summitville  R.  R.  Co.,  Dir. 

Poughkeepsie  Bridge  R.  R.  Co.,  Dir. 

Pullman  Co.,  The,  Dir. 

Raquette  Lake  Railway  Co.,  Dir. 

Rhode  Island  Co.,  (Electric  Line),  Dir. 

Rutland  R.  R.  Co,  Dir. 

St.  Lawrence  &  Adirondack  Railway  Co.,  Dir. 

Syracuse,  Geneva  &  Corning  Railway  Co.,  Dir. 

Terminal  Railway  of  Buffalo,  Dir. 

U.  S.  Steel  Corporation,  Dir. 

W allkill  Valley  R.  R.  Co.,  Dir., 

West  Shore  R.  R.  Co.,  Dir. 

Western  Union  Telegraph  Co.,  Dir. 

MORGAN,  J.  PIERPONT,  Jr. 

Acadia  Coal  Co.,  Limited,  Dir. 

International  Mercantile  Marine  Co.,  The,  Dir. 

Northern  Pacific  Railway  Co.,  Dir. 

MURRAY,  THOMAS. 

American  Bridge  Co.,  Dir. 

American  Bridge  Co.,  of  N.  Y.,  Dir. 

American  Sheet  &  Tin  Plate  Co.,  Dir. 

American  Steel  &  Wire  Co.,  of  N.  J.,  The,  Dir. 

Duluth  &  Iron  Range  R.  R.  Co.,  Assistant  Secretary,  Assistant 
Treasurer  and  Dir. 

Federal  Steel  Co.,  First  V.  Pres,  and  Dir. 

Lake  Superior  Consolidated  Iron  Mines,  V.  Pres,  and  Dir. 

National  Tube  Co.,  Dir. 

Scott  &  Fowles  Co.,  Dir. 

Tennessee,  Coal,  Iron  &  R.  R.  Co.,  Dir. 

Traction  Equipment  Co.,  Dir. 

U.  S.  Steel  Products  Export  Co.,  Sec’y  and  Dir. 

PERKINS,  GEORGE  W. 

Astor  Trust  Co.,  Dir. 

Bankers’  Trust  Co.,  Dir. 


90 


PERKINS,  GEORGE  W.— Continued. 

Cincinnati,  Hamilton  &  Dayton  R.  R.  Co.,  Chairman  of  the  Board 
of  Directors. 

Dayton  &  Union  R.  R.  Co.,  Dir. 

German-American  Insurance  Co.,  Dir. 

Great  Central  Dock  Co.,  V.  Pres,  and  Dir. 

Hamilton  Belt  Railway  Co.,  V.  Pres,  and  Dir. 

International  Harvester  Co.,  Chairman  of  Finance  Committee  and 
Director. 

International  Mercantile  Marine  Co.,  Dir. 

Marquette  &  Bessemer  Dock  &  Navigation  Co.,  Dir. 

National  City  Bank  of  N.  Y.,  The,  Dir. 

N.  Y.  Trust  Co.,  Trustee. 

Northern  Pacific  Railway  Co.,  Dir. 

Northern  Securities  Co.,  Dir. 

Perre  Marquette  R.  R.  Co.,  Chairman  of  the  Board  of  Dirs. 

U.  S.  Steel  Corporation,  Dir. 

PHIPPS,  HENRY. 

Mellon  National  Bank,  Pittsburg,  Dir. 

Philadelphia  Rapid  Transit  Co.,  Dir. 

U.  S.  Steel  Corporation,  Dir. 


REAM,  NORMAN  B. 

Baltimore  &  Ohio  R.  R.  Co.,  Dir. 

Brooklyn  Heights  R.  R.  Co.,  Dir. 

Brooklyn  Rapid  Transit  Co.,  Dir. 

Central  Safety  Deposit  Co„  Y.  Pres,  and  Dir. 
Chicago  &  Erie  R.  R.  Co.,  Dir. 

Chicago,  Burlington  &  Quincy  R.  R.  Co.,  Dir. 
Cincinnati,  Hamilton  &  Dayton  R.  R.  Co.,  Dir. 
Cumberland  Corporation,  Dir. 

Erie  R.  R.  Co.,  Dir. 

First  National  Bank  of  Chicago,  Dir. 
Franco-American  Financial  Association,  The,  Dir. 
International  Harvester  Co.,  Dir. 

Metropolitan  Trust  Co.  of  the  City  of  N.  Y.,  Dir. 
National  Biscuit  Co.,  Dir. 

N.  Y.,  Susquehanna  &  Western  R.  R.  Co.,  Dir. 

N.  Y.  Trust  Co.,  Trustee. 

Pennsylvania  Coal  Co.,  Dir. 

Pere  Marquette  R.  R.  Co.,  Dir. 

Pullman  Co.,  The,  Dir. 

Reliance  Co.,  The,  Dir. 

Seaboard  Air  Line  Railway,  Dir. 

Securities  Co.,  The,  Dir. 

U.  S.  Steel  Corporation,  Dir. 


91 


REID,  DANIEL  G.,  Vice  President  and  Director  of  the  Liberty  National 
Bank. 

> 

American  Can  Co.,  Dir. 

Astor  Trust  Co.,  Dir. 

Bankers’  Trust  Co.,  Dir. 

Chicago  &  Eastern  Illinois  R.  R.  Co.,  Dir. 

Chicago,  Rock  Island  &  Pacific  R.  R.  Co.,  Dir. 

Chicago,  Rock  Island  &  Pacific  Railway  Co.,  The,  Chairman  of  the 
Board  of  Dirs. 

Continental  Insurance  Co.,  The,  Dir. 

Evansville  &  Indianapolis  Railway,  V.  Pres,  and  Dir. 

Evansville  &  Terre  Haute  R.  R.  Co.,  Y.  Pres,  and  Dir. 

Guaranty  Trust  Co.  of  N.  Y.,  Dir. 

Keokuk  &  Des  Moines  R.  R.  Co.,  V.  Pres  and  Dir. 

Peoria  &  Bureau  Vally  R.  R.  Co.,  Pres,  and  Dir. 

Rock  Island  Co.,  The,  Dir. 

St.  Louis  &  San  Francisco  R.  R.  Co.,  Dir. 

Second  National  Bank,  Richmond,  Ind.,  Dir.  and  Y.  Pres. 

Union  National  Bank,  Richmond,  Ind.,  Dir. 

U.  S.  Steel  Corporation,  Dir. 

ROCKEFELLER,  JOHN  D.  Jr. 

American  Linseed  Co.,  Dir. 

Delaware,  Lackawanna  &  Western  R.  R.  Co.,  Member  of  Board 
of  Managers. 

Standard  Oil  Co.  (of  N.  J.,)  Dir. 

U.  S.  Steel  Corporation,  Dir. 

STEELE,  CHARLES. 

Adams  Express  Co.,  The,  Member  of  the  Board  of  Managers. 
Alabama  Great  Southern  R.  R.  Co.,  Dir. 

Atchison,  Topeka  &  Santa  Fe  Railway  Co.,  The,  Dir. 

Central  R.  R.  Co.,  of  N.  J.,  The,  Dir. 

Chicago  &  Erie  R.  R.  Co.,  Dir. 

Chicago,  Indianapolis  &  Louisville  Railway  Co.,  Dir. 

Cincinnati,  Hamilton  &  Dayton  Railway  Co.,  Dir. 

Erie  &  Jersey  R.  R.  Co.,  Dir. 

Erie  R.  R.  Co.,  Dir. 

General  Electric  Co.,  Dir. 

Gulf,  Colorado  &  Santa  Fe  Railway  Co.,  Dir. 

International  Harvester  Co.,  Dir. 

International  Mercantile  Marine  Co.,  The,  Dir. 

Lehigh  Valley  R.  R.  Co.,  Dir. 

Lehigh  Valley  Railway  Co.,  Dir. 

National  Tube  Co.,  Dir. 

N.  J.  &  N.  Y.  R.  R.  Co,  Dir. 

N.  Y.  Susquehanna  &  Western  R.  R.  Co,  Dir. 

Northern  Pacific  Railway  Co,  Dir. 

Pere  Marquette  R.  R.  Co,  Dir. 

Santa  Fe,  Prescott  &  Phoenix  Railway  Co,  Dir. 


92 


STEELE,  CHARLES.— Continued. 

Southern  Railway  Co.,  Dir. 

Standard  Trust  Co.,  Dir. 

U.  S.  Steel  Corporation,  Dir. 

STETSON,  FRANCIS  LYNDE. 

Atlantic  Coast  Lumber  Corporation,  Dir. 

Cataract  Power  &  Conduit  Co.,  of  Buffalo,  Dir. 

Chicago  &  Erie  R.  R.  Co.,  Dir. 

Erie  &  Jersey  R.  R.  Co.,  Dir. 

Genesee  River  R.  R.  Co.,  Dir. 

N.  Y.,  Susquehanna  &  Western  R.  R.  Co.,  Dir. 

Niagara  Falls  Power  Co.,  The,  Dir. 

Niagara  Development  Co.,  Dir. 

Niagara  Junction  Railway,  Dir. 

U.  S.  Express  Co.,  Dir. 

U.  S.  Rubber  Co.,  Dir. 

TRIMBLE,  RICHARD. 

Elgin,  Joliet  &  Eastern  Railway  Co.,  Dir. 

Federal  Steel  Co.,  Sec’y,  Treas.  and  Dir. 

Lake  Superior  Consolidated  Iron  Mines,  Dir. 

Minnesota  Steel  Co.,  Treas.  and  Dir. 

National  Tube  Co.,  Dir. 

Tennessee  Coal,  Iron  &  R.  R.  Co.,  Dir. 

Union  Steel  Co.,  Dir. 

WALTERS,  HENRY. 

Atlanta  &  West  Point  R.  R.  Co.,  Dir. 

Atlantic  Coast  Line  Co.,  The,  Chairman  of  the  Board  of  Dirs. 
Atlantic  Coast  Line  R.  R.  Co.,  Chairman  of  the  Board  of  Dirs. 
Belt  Line  Railway  Co.,  (Montgomery,  Ala.)  Dir. 

Charleston  &  Western  Carolina  Railway  Co.,  V.  Pres,  and  Dir. 
Chesapeake  Steamship  Co.,  Dir. 

Chicago,  Indianapolis  &  Louisville  Railway  Co.,  Dir. 

Columbia,  Newberry  &  Laurens  R.  R.  Co.,  Dir. 

Cuba  Co.,  The,  Dir. 

Lackawanna  Steel  Co.,  Dir. 

Louisville  &  Nashville  R.  R.  Co.,  Chairman  of  Board  of  Dirs. 
Milledgeville  Railway  Co.,  Dir. 

Nashville,  Chattanooga  &  St.  Louis  Railway  Co.,  Dir. 

N.  Y.  Shipbuilding  Co.,  Dir. 

Northern  Central  Railway  Co.,  Dir. 

Northwestern  R.  R.  Co.  of  South  Carolina,  Dir. 

Old  Dominion  Steamship  Co.,  Dir. 

Richmond- Washington  Co.,  Dir. 

Safe  Deposit  &  Trust  Co.,  Baltimore,  V.  Pres,  and  Dir. 

Southern  Cotton  Oil  Co.,  The,  Dir. 

Yirginia-Carolina  Chemical  Co.,  Dir. 

Washington  Southern  Railway  Co.,  Dir. 

Western  Railway  of  Alabama,  Dir. 

Western  Union  Telegraph  Co.,  The,  Dir. 

Wilmington  Savings  &  Trust  Co.,  (Wilmington,  N.  C.)  Y.  Pres,  and 
Dir. 


93 


DICKSON,  WILLIAM  B. 

Butte  Coalition  Mining  Co.,  Dir. 

Carnegie  Steel  Co.,  Dir. 

Minnesota  Steel  Co.,  Pres.  &  Dir. 

Montclair  Trust  Co.,  Dir. 

National  Tube  Co.,  Dir. 

Red  Metal  Mining  Co.,  Dir. 

Tennessee  Coal,  Iron  &  R.  R.  Co.,  Dir. 
Trenton  Iron  Co.,  Dir. 

Union  Steel  Co.,  Pres,  and  Dir. 

FILBERT,  WILLIAM  J. 

Essex,  Iron  Co.,  Dir. 

Lake  Superior  Consolidated  Iron  Mines,  Dir. 
Minnesota  Steel  Co.,  Sec’y  and  Dir. 
Tennessee  Coal,  Iron  and  R.  R.  Co.,  Dir. 
Troy  Steel  Products  Co.,  Dir. 

Union  Steel  Co.,  Dir.  and  Sec’y. 


